The United States Securities and Exchange Commission defines an Accredited Investor as being:
1). a bank, insurance company, registered investment company, business development company, or small business investment company;
2). An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment advisor makes the investment decisions. Or if the plan has total assets in excess of $5 million;
3). A charitable organization, corporation, or partnership with assets exceeding $5 million;
4). A director, executive officer, or general partner of the company selling the securities;
5). A business in which all of the equity owners are accredited investors;
6). A natural person who has individual net worth or the joint net worth with the person's spouse that exceeds $1 million at the time of the purchase;
7). A natural person with income exceeding $200,000 in each of the two most recent years and a reasonable expectation of the same income level in the current year; or
8). A trust with assets in excess of $5 million, not formed to acquire the securities offered whose purchases a sophisticated person makes.
The accredited definition investor has to meet at least one of the preceding rules, to be considered an accredited definition investor by the SEC.
A First Funds Investor is someone who enrolls in mutual funds, security funds, income funds, growth funds aggressive growth funds or US dollar funds, investing for the first time.
There are many corporations in which you can become a first funds investor. Some of the following have been reviewed by us as the best options around for first time investing: First American Funds, Columbia Funds, BMO Mutual Funds, First Focus Funds and Sit Mutual Funds.