Minimum Investment

Minimum Investment
The smallest dollar or share quantity that an investor can purchase when investing in a specific security or fund. Most often seen in relation to mutual funds, minimum investments are also found consistently in fixed-income securities hedge funds, collateralized mortgage obligations (CMO) and limited partnerships (LP) where $1,000 units is typically the smallest cut allowed.

Minimum investment amounts for mutual funds can stretch anywhere from $0 all the way to $1 million or more for institutional share classes. Hedge fund minimum investments can be even larger, as can some LPs and unit investment trusts. For retail investors, there remains a large selection of funds that have modest minimum investments of a few hundred dollars.

A big factor for a fund manager in determining a minimum investment size is the strategy and liquidity demands of the fund itself. By setting a high minimum investment, fund managers can effectively weed out short-term investors and regulate cash inflows to the fund, which can be helpful for day-to-day management of the assets.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • investment — money used to purchase any capital items for the business and expected to yield an income. Glossary of Business Terms The creation of more money through the use of capital. Bloomberg Financial Dictionary This has a special regulatory meaning… …   Financial and business terms

  • minimum — ▪ I. minimum min‧i‧mum 1 [ˈmɪnməm] adjective [only before a noun] the smallest or least that is possible, allowed, or needed: • Minimum investment in each fund is £2000. • There is a minimum charge of £30. • The minimum requirements for the job… …   Financial and business terms

  • investment — in|vest|ment W1 [ınˈvestmənt] n 1.) [U and C] the use of money to get a profit or to make a business activity successful, or the money that is used ▪ Foreign investment in Taiwan rose by 79% last year. ▪ A Certificate of Deposit remains one of… …   Dictionary of contemporary English

  • investment */*/*/ — UK [ɪnˈves(t)mənt] / US [ɪnˈvestmənt] noun Word forms investment : singular investment plural investments 1) a) [countable/uncountable] business money used in a way that may earn you more money, for example money used for buying property or… …   English dictionary

  • investment — in|vest|ment [ ın vestmənt ] noun *** 1. ) count or uncount money used in a way that may earn you more money, for example money used for buying property or STOCK in a company: Her investments were mainly in technology stocks. an investment banker …   Usage of the words and phrases in modern English

  • Minimum wage in the United States — History of the federal minimum wage in real and nominal dollars. As of July 24, 2009 (2009 07 24) …   Wikipedia

  • Minimum acceptable rate of return — In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the… …   Wikipedia

  • investment — noun ADJECTIVE ▪ excellent, good, productive, profitable, sound, successful, wise, worthwhile ▪ bad, poor …   Collocations dictionary

  • minimum — {{Roman}}I.{{/Roman}} noun ADJECTIVE ▪ absolute, bare, very ▪ agreed, guaranteed ▪ recommended ▪ federal …   Collocations dictionary

  • Minimum viable product — In product development, the Minimum Viable Product or MVP is a strategy used for fast and quantitative market testing of a product or product feature, popularized by Eric Ries for web applications.[1][2] Contents 1 Description 1.1 Techni …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”