The invested portion is the share of a Combined's capital that an allocation profile puts to work; whatever is left over is held as a cash reserve and deployed into nothing. It is one number for the whole profile of a Combined — a strategy assembled from other strategies — applied before those strategies are weighted against each other, so it controls how much of your capital is at work rather than what it is at work in. In the app it is the "Invested portion" control, whose helper reads "Share of capital this profile deploys" and whose unit is "%".
Also seen as: invested capital, cash reserve (the complement), share of capital deployed.
How is the deployed amount calculated?
Multiply the profile's capital by the invested portion; the remainder is the reserve.
where is the invested portion as a fraction between 0 and 1, is the capital the profile has, is the amount deployed into strategies, and is the cash reserve. The deployed amount is what the allocation method then splits across the strategies the Combined holds; never reaches them.
What are the invested-portion presets?
Four presets cover the common cases, with a slider for anything else:
| Preset | Invested portion | Cash reserve |
|---|---|---|
| Fully invested | 100% | none |
| Mostly invested | 75% | 25% |
| Half invested | 50% | 50% |
| Lightly invested | 25% | 75% |
| Custom | any value you set with the slider | the remainder |
What happens to the cash reserve?
The reserve stays as cash: it is not allocated to any strategy and takes no market exposure, so it neither rises nor falls with the instruments the Combined holds. It accrues interest in the simulation only when the Costs & interests simulation assumption is on; that assumption is off by default, so on the figures you meet first the reserve earns nothing at all — see interest received and paid.
Its effect on results is symmetric: a reserve dampens gains and losses in the same proportion, because only the deployed share of capital is exposed to the market. Holding half in cash halves the impact of a market move, in both directions. The return the reserve gives up over a rising window is cash drag, which is the same arithmetic read from the other side.
Defaults in Fincanva
- A new allocation profile starts fully invested at 100%; the range is 0% to 100%.
- The value belongs to the profile, not the Combined, so a Risk-Off profile can hold a different invested portion from the Risk-On one — see Risk conditions.
- At 0% nothing is deployed and the run simply tracks an uninvested balance.
- The invested portion is a Combined-level control. A single strategy's exposure is set on its own allocation profile with leverage instead.
- Deploying does not mean spending exactly : whole-share rounding leaves a little of it unspent, which is target vs deployed.
Worked example
A Combined holds 10,000 and its allocation profile is set to Mostly invested (75%). Deployed is 0.75 × 10,000 = 7,500, and the cash reserve is 0.25 × 10,000 = 2,500. The allocation method then splits the 7,500 across the strategies in the Combined; the 2,500 sits in cash and is allocated to nothing.
Now suppose the deployed holdings fall 10% over a month. The loss is 10% of 7,500 = 750, which is 7.5% of the Combined's 10,000 — not 10%, because a quarter of the capital was never exposed. The same arithmetic runs upward: a 10% rise would be 750, or 7.5% of total capital. The reserve did not protect the deployed part; it simply kept a quarter of the capital out of the move.
Fincanva does not tell you how much of your capital to put to work or how much to hold in cash — see Is this financial advice?.
Where this term is used
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Fincanva provides no financial advice. Backtests show what would have happened — not what will.
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