Mutual fund qestion: Initial investment vs Initial investmetn IRA?

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If you are talking about purchasing the same funds in an individual brokerage account - a non-retirement account - it would not be related to your 401k at all.

Initial investment minimums will need to be met for each account. These are common among mutual funds.

A minimum subsequent investment - is the smallest amount you can invest AFTER the initial investment.

AIP - Automatic Investment Plan (like through your company 401k) will often take amounts that are unrelated to the subsequent investment constraints - as do dividend reinvestment plans (DRIP).

AIP: money can be auto-deposited to your mutual fund acct via EFT from your personal checking. On the specified date, the funds will transfer and shares are purchased. Does that help? I suggest downloading the fund prospectus and an application - it will all be in the fine print! Report It

The first account is under the name of your company/401k/you. The additional money you are talking about is a completely different account under only your name so it is considered a min initial investment. A min subsequent investment would be money added to the fund after you first establish it. Minimums are usually around $50 vs the initial investment of $2500 or $3,000 of many funds.

The Min Subsequent Investment is the minimum amount you can invest once you have already joined the fund with your Minimum Initial Investment. I guess this is there way of not having to process every nickel and dime you throw into your account, and to make sure your a serious investor. They want you to save up to the Min Subsequent Investment before you can buy more shares. For example, if the Min Subsequent Investment is $500, they would want one purchase of $500 when you save it up in your account, vs. 10 purchases at $50.