The expenses of an investment company shall not exceed 10% of its total investment fund or total net worth.

To assess the expenses of an investment company relative to its total investment fund or net worth, we need to establish a clear understanding of the financial parameters involved.

Understanding the 10% Limit

1. Total Investment Fund: This reflects the total assets the company has invested in various entities.
2. Total Net Worth: This is the difference between total assets and total liabilities, indicating the company's total equity.

10% Rule Application
The main rule here is that the company's expenses should not exceed 10% of either of these two financial metrics. This ensures financial prudence and sustainability.

Mathematical Formulation
Let:

• $I$ = Total Investment Fund
• $N$ = Total Net Worth
• $E$ = Total Expenses

The condition can be expressed in mathematical terms as:
$E \leq 0.10 \cdot I \quad \text{and} \quad E \leq 0.10 \cdot N$

Conclusion
In summary, to stay compliant, the investment company's expenses should always be within 10% of its total investment fund or total net worth. This principle helps maintain financial stability and prepares the company for unforeseen financial challenges.