To invest in a mutual fund the financial institution requires this specific type of lowest monetary amount. To open a new account, this is called the minimum initial purchase. To deposit into an account already in existence, this is called the minimum additional purchase. The financial institution that operates the mutual fund sets these varied amounts. Also known as minimum initial purchase and minimum additional purchase.

More On This Topic

Link to This Definition
Did you find this definition of MINIMUM PURCHASES helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary