The minimum investment required for a Vanguard IRA and custodial account is being tripled, from $1,000 to $3,000, while the minimum needed for a Vanguard Education Savings Account is being doubled, from $1,000 to $2,000. An exception to the increases is the Vanguard STAR fund, popular among IRA owners and entry-level investors. Its minimum will stay at $ 1, 000.
"It's unfortunate, to say the least, that one of the best-run mutual fund companies in the country is pricing itself out of the market for middle-income investors," Barbara Roper, director of investor protection at the
Vanguard spokesman John Demming said the company simply wants to standardize its minimum investments at the $3,000 level, which applies to most of its products. But some industry observers believe the higher minimums are a way for the company to reduce the expenses that go along with servicing small investors.
