For mutual funds, the amount required to open a new account (Minimum Initial Purchase) or to deposit into an existing account (Minimum Additional Purchase). These minimums may be lowered for buyers participating in an automatic purchase plan
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The minimum amount one may invest in a mutual fund should one decide to buy shares. For example, a mutual fund may set a minimum purchase of $1000 in order to make the purchase of shares worth the effort for the company managing the fund while still keeping shares affordable for most investors.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved