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Accredited Investor: Definition, Qualifications, Rules

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An accredited investor is an individual or entity that meets specific financial criteria giving them access to private investment opportunities not registered with the U.S. Securities and Exchange Commission .

Individuals qualify as accredited investors by having a net worth exceeding $1 million , excluding their primary residence, or an annual income of at least $200,000 in each of the past two years .

Certain financial professionals and entities also qualify based on assets or expertise.

Accredited investor status expands access to investment opportunities beyond publicly traded markets.

Alternative assets, such as private real estate and pre-IPO companies, can help broaden an investment portfolio.

These investments often come with greater risk, lower liquidity and less regulatory oversight.

Consider using factor-based investing for portfolio diversification.

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