The minimum investment for mutual funds can be as low as $0 (in which investors are simply setting up an account) and as high as $1 million and beyond for mutual funds that cater to high-net-worth investors. Mutual fund companies don't have much consistency regarding this matter.
Why High Minimum Investments?
Many mutual fund companies, especially boutique firms, believe that by setting high minimum investments they will attract wealthy investors who are more likely to keep their money in one place for an extended period.
Finding the Minimum
A quick way to find the minimum investment for mutual funds is to visit company websites or call the company’s client services department. Another efficient option is to go to third-party websites (such as analytics companies and the investing section of newspapers), where you can find the fund you’re interested in and click through the fund details.
Stated vs. Actual Minimum
The stated minimum may be higher than the actual minimum. When you place and order that’s below the stated minimum, the order is accepted or declined on a case-by-case basis. If you’ve chosen a reoccurring purchase option, the company may accept an initial purchase that’s below the stated minimum. Call the chosen company to inquire.