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Do mutual funds have a minimum investment minimum?

Keep in mind that mutual funds may have higher investment minimums than other asset classes. For example, Vanguard’s minimum investment for actively managed mutual funds is $3,000. Other investments, like individual stocks or ETFs, generally do not have these kinds of minimums.

What is a minimum investment?

A minimum investment is the smallest dollar or share quantity that an investor can purchase when investing in a specific security, fund, or opportunity. Often, mutual funds will require a minimum amount in order to ensure they have enough assets under management (AUM) to achieve their investment goals and cover overhead.

Are actively managed funds a good investment?

Actively managed funds are overseen by a fund manager who’s responsible for deciding what the fund should own. These funds tend to carry higher expense ratios than passively managed funds but you get the benefit of the fund manager’s expertise. Here’s more on how actively managed funds work and their pros and cons.

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