Vanguard Group on Tuesday tripled the minimum initial investment for individual retirement and custodial accounts for all but one of its mutual funds to $3,000.
The minimum requirement for opening a regular account in Vanguard's funds, except for the Vanguard STAR Fund (VGSTX), remains $3,000. The STAR Fund continues to require a $1,000 minimum for general and custodial accounts, and for IRAs. Vanguard has required a $3,000 minimum for general accounts for its other funds since 1989.
Vanguard said the new uniform minimums "more fairly reflect the economics of our business," and will be more easily understood by shareholders and prospective investors. Accounts with small balances can be more expensive to service than large ones.
