minimum investment

Minimum Investment

The least amount of money one may place in a portfolio or fund. Some brokerages, such as boutiques, only accept clients who are willing to put up a large minimum investment. Likewise, most hedge funds exclude small investors by having a minimum investment, usually in the millions of dollars. Examples of investment vehicles with small minimum investments are IRAs and 401(k)s.

minimum investment

The least amount of money required to invest or open an account in a mutual fund. Different funds impose different minimum investments, and a fund may impose different minimum investments for different types of accounts. For example, many mutual funds require lower minimum investments for individual retirement accounts compared to regular accounts.