INCOME CAPITAL FOREX FUND – Questions & Answers (April 2024)
What is the INCOME CAPITAL FOREX Fund?
The INCOME CAPITAL FOREX Fund is an investment fund managed by INCOME CAPITAL MANAGEMENT s.r.o. that operates in the global foreign exchange (FX) market. Its objective is capital appreciation through active currency trading using a structured and risk-controlled approach.
What does the Fund invest in?
The Fund trades major currency pairs, primarily:
- EUR/USD
- EUR/GBP
- GBP/USD
Trading activity is focused on liquid FX markets, allowing efficient execution and continuous risk monitoring.
What is the investment objective of the Fund?
The objective is to generate returns through active forex trading while applying disciplined risk management. The Fund does not aim to guarantee profits and does not eliminate market risk.
What type of strategy does the Fund use?
The Fund adopts an active trading strategy with a scalping-oriented approach, meaning it takes advantage of short-term price movements in the currency markets.
Investment decisions are supported by:
- Fundamental analysis (macroeconomic data, interest rates, geopolitical events)
- Technical analysis (price patterns, market behavior)
- Technology-supported execution systems
Does the Fund use Artificial Intelligence?
Yes. The Fund uses AI and algorithmic tools to support market analysis and trade execution.
AI is used to:
- Analyze large datasets of historical and live market data
- Identify patterns and market signals
- Support decision-making and execution efficiency
AI does not operate independently and is always subject to human oversight and risk controls.
Who manages the Fund?
The Fund is managed by professional fund managers supported by financial analysts, automated trading systems (Expert Advisors), and risk management and compliance teams. Human supervision remains central to the investment process.
What is the risk level of the Forex Fund?
The Forex Fund has a medium-to-high risk profile. Foreign exchange markets are volatile, and losses can occur, including partial or total loss of invested capital depending on the investment level chosen.
What are the main risks involved?
Key risks include:
- Market and volatility risk
- Currency risk
- Liquidity risk
- Technological and system risk
- Operational and regulatory risk
Investors should carefully assess their risk tolerance before investing.
How does the Fund manage risk?
Risk management measures include position sizing rules, stop-loss mechanisms, continuous monitoring of market exposure, diversification of trading positions, and compliance with regulatory standards. Risk is actively managed but cannot be eliminated.
Are there different investment levels?
Yes. The Fund offers four investment levels:
- Conservative – lower risk, partial capital protection, lower return range
- Mild-Conservative – balanced approach between risk and protection
- Mild-Aggressive – higher risk with higher potential returns
- Aggressive – highest risk and highest return potential
Each level has a defined expected return range and capital protection structure, where applicable.
Is capital guaranteed?
Capital protection depends on the selected investment level. Some levels offer partial capital protection, while others are fully exposed to market risk. Capital is never fully guaranteed.
How often are returns updated?
Returns are updated weekly for the Forex Fund. Performance is calculated based on the working amount invested. Returns may vary depending on market conditions.
What fees apply to the Forex Fund?
There are no entry fees and no fixed management fees. A performance fee is applied only on realized net profits. Compliance-related onboarding costs (KYC/AML) are borne by the investor.
Can an investor exit before maturity?
Yes. Early exit is possible under predefined conditions. Fees or penalties may apply depending on the investment level, duration of the investment, and timing of the withdrawal. Details are specified in the official documentation.
Who can invest in the Forex Fund?
The Fund is intended for investors who understand financial markets and FX trading risks, are comfortable with medium-to-high risk investments, and have a medium to long-term investment horizon. The Fund may not be suitable for all investors.
Is the Fund regulated?
Yes. INCOME CAPITAL MANAGEMENT s.r.o. operates under the supervision of the Czech National Bank, in accordance with applicable regulations. All investors are subject to KYC, AML, and PEP checks.
How is transparency ensured?
Transparency is ensured through regular performance reporting, access to investment data via the private client area, dedicated investor support, and clear documentation outlining risks, fees, and strategy.
Where can investors find official documentation?
Official documentation, including the KID, is provided during onboarding and is available upon request from INCOME CAPITAL MANAGEMENT.
Is this information investment advice?
No. This information is provided for educational and informational purposes only and does not constitute investment advice. Investors should seek independent professional advice before making any investment decision.
