A couple of questions regarding Instance Static Meshes

  1. Draw call probably not occur, but static mesh and it’s resources should be loaded.
  2. 3 mesh with 5 instances. Every Instanced Static Mesh Component means new mesh with all it’s parameters, and instancing only its instances, not instances of another ISM.

Also I recommend to use Hierarchical ISM, because it works with LODs and distance culling.