I found while looking at money market/purchased money funds that while there is no minimum initial investment for SWVVX ("investor shares") there was a minimum initial investment of $1,000,000 for SNAXX ("ultra shares").

My question is: are there certain classes of investments generally subject to minimum initial investments? What are they and why?

I know this is somewhat broad. Specifically I am trying to invest large (in my opinion) quantities of money (>$10,000) in a vehicle safer than mutual/index funds but with greater return than a high-yield savings account and trying to see what doors having a sum this size to start with opens.

  • First, less risky than mutual funds is really tough. There are certainly some high risk funds. But there are also very, very safe funds that invest in short term, highly rated government debt. There isn't much between an insured savings account and a safe money market mutual fund. Your question also doesn't seem to have a lot to do with what you appear to be trying to accomplish. Classes of investment that require large minimum initial investments generally aren't doing so because they're really safe, they're doing so because they are risky (cont) Mar 3, 2021 at 21:13
  • and regulators don't want Joe Blow putting his life savings in some highly speculative hedge fund because he saw a post on reddit and getting wiped out or because the investment company is willing to lower their fees for large customers since it doesn't cost more to send a statement to the guy with a $100,000 balance than to the guy with a $500 balance. Mar 3, 2021 at 21:15

1 Answer 1


In the US there's a legal defintion of a "sophisticated investor", and in many cases investment vehicles are only allowed to be sold to them.

You can easily google endless info about this, example https://smartasset.com/investing/sophisticated-investor

{I have no idea about the specific one you're asking about, but that is the general thrust of the situation in the US and at base it likely relates to that.}

Regarding the issue "I don't quite meet the Sophisticated Investor qualifications but I want to invest in all the good stuff..."

For this very purpose there is now the new Reg-C and Reg-D stuff. So you can go to startengine.com or their competitors and invest in early stuff.

Please note that I do not necessarily recommend this in any way, most startengine, Reg-C, etc projects are complete rubbish but this is indeed the "latest thing" in the spirit of what you're asking about in the final paragraph.

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