When you deal with investment products, you may stumble upon a term “Accredited Investor”. There are generally three types of investors in the market:
Retail Investors Accredited Investors Institutional Investors
Accredited investors (AI) are often High Networth Individuals. They have access to some of the untraditional or sophisticated investment products which are out of touch by the retail investors.
This article will briefly explain
Who qualifies as an Accredited Investor? How to qualify? Are products for Accredited Investors good? Why some products are sold for Accredited Investor only
The term originates from the English word ‘accredited’ which literally means someone who has been given special authority or sanction if they meet certain recognized standards. Accredited investors are most popular for purchasing securities which are not “regulated”.
There are two misconceptions of Accredited Investor products:
Accredited Investor investment products are superior because they are scarce, and for the high net worth