11 Best Investments for Accredited Investors [Opportunities to Try]
When you become an accredited investor, you are in the elite group of people who have the financial means and regulatory clearance to make investments that others cannot. This can mean exclusive access to hedge funds, venture capital firms, certain investment funds, private equity funds, and more.
What is an Accredited Investor?
Accredited investors include high-net-worth individuals (HNWIs), banks, insurance companies, securities brokers, and trusts. An accredited investor may trade securities that do not require registration with financial authorities, like the Securities and Exchange Commission.
How Does the Securities and Exchange Commission Define an Accredited Investor?
While the accredited investor definition recently changed—from one which usually meant high-net-worth/high-income individuals to now one which focuses on investor experience and knowledge—it typically skews more towards investors with financial resources and familiarity.
How Do You Become an Accredited Investor?
1. You have a net worth (or joint net worth) exceeding $1,000,000 (excluding your primary residence). 2. You are part of an association or trust with assets exceeding $5,000,000. 3. Your annual income has exceeded $200,000 in each of the previous two years, and you expect to make the same amount this year. 4. You must exceed $300,000 of joint income if you have a spouse.
Best Investments for Accredited Investors
- Minimum Investment to Start: $1,000 - Type of Investor: All Investors
- Minimum Investment to Start: $25,000 - Type of Investor: Accredited Investors Only
3. Equity Multiple
- Minimum Investment to Start: $5,000 - Type of Investor: Accredited Investors Only
- Minimum Investment to Start: None - Type of Investor: All Investors
Swipe up TO KNOW MORE ABOUT 11 Best Investments for Accredited Investors [Opportunities to Try]