# The cash component

## What is the cash component?

The cash component is the uninvested cash held within your investment account. You'll see it listed as "Cash" in your **Current investments** section.

- **Temporary holding**: Cash sits here briefly before being invested according to your strategy
- **Part of your balance**: The cash component is included in your total account balance
- **Separate from your Cash account**: This is different from your main Fynbos Cash account used for deposits and withdrawals

Every investment account (Tax-Free Savings, Investment Account, Retirement Annuity) has its own cash component that serves as a staging area for money before it's invested.

## Why cash exists in your investment account

Cash appears in your investment account for several reasons during normal operation.

**Pending buy orders**: When you transfer money into your investment account, it arrives as cash first. The system then creates buy orders according to your investment strategy. Until those orders execute during the next trade window, the money shows as cash.

**Settlement timing**: Buy orders don't execute instantly. Your cash is reserved when the order is created, then converted to fund units when the trade settles. This typically takes 1-2 business days.

**Dividend and interest payments**: When your funds pay dividends or interest, the payment arrives as cash in your investment account. This cash is then automatically reinvested according to your strategy.

**Rounding differences**: Small amounts may remain as cash when a buy can't purchase a whole unit of a fund. These amounts are typically reinvested with your next contribution.

## How pending buys work

When money enters your investment account, the system automatically creates buy orders based on your investment strategy.

1. Money transfers into your investment account and appears as cash
2. The system calculates how much to allocate to each fund based on your strategy percentages
3. Buy orders are created and your cash is reserved
4. Orders execute during the next trade window
5. Once settled, your cash converts to fund units

During this process, you'll see cash in your holdings alongside your fund investments. This is normal and means your money is waiting to be invested.

> **Note**: If your investment strategy allocates to multiple funds, the system creates separate buy orders for each fund. All orders execute together in the next trade window.

## Dividend reinvestment

When your funds pay dividends or distribute interest, the payment is added to your cash component and automatically reinvested.

**How it works**:

1. Your fund declares a dividend or interest payment
2. The payment is credited to your investment account as cash
3. The system creates buy orders according to your current strategy
4. Your dividend is reinvested in your chosen funds

You'll receive a notification when dividends are earned. The reinvestment happens automatically — you don't need to take any action.

**What this means for you**:

- Your returns compound over time as dividends buy more fund units
- Reinvestment follows your current strategy, even if you've changed it since buying
- Small dividend amounts may accumulate until they're large enough to purchase fund units

## Viewing your cash balance

You can see your cash component in the *Current investments* section of your investment account.

1. Open your investment account (Tax-Free Savings, Investment Account, or Retirement Annuity)
2. Scroll to the **Current investments** section
3. Cash appears as a line item alongside your fund holdings

The cash amount shown is the total uninvested cash in that account, including any pending buy orders that haven't settled yet.