Each pie has its internal cash storage.
Most of the time the amount of cash in the pie should be 0 or close to 0. However, the amount of cash can jump significantly due to the following reasons 👇
- Funds that have been recently deposited into the pie and are still pending to be invested.
- You have received dividend income that hasn't been reinvested yet.
- The pie is currently in a rebalancing state - some stocks have been sold and their monetary value is still pending to be reinvested in other stocks.
- It is possible that a small amount of "spare change" remains as free cash after rebalancing or investing events.
When investing new funds (manually or automatically) the pie will automatically add the existing pie cash to the newly contributed amount and invest the total.
Example: You have £0.34 free cash in your pie and you invest an additional £100. In this case, the pie will invest a total amount of £100.34.
When withdrawing funds from your pie, cash always has priority over selling securities.
Example: You have £0.34 as 'free cash' in your pie and you want to withdraw £100. The £0.34 will be sourced from your pie's cash and the remaining £99.66 will come from selling.