USSIF description: Retail investors are the majority of individual investors. Also known as non-accredited investors, they are individuals who have less than one million dollars in net assets. Because they are less tolerant to financial losses, the government places limits on investors who manage or accept capital from non-accredited individuals.

USSIF description: The term accredited investors refers to wealthy individuals, family offices and organizations such as foundations/endowments and other institutional investors. For individuals to qualify as “accredited”, they must have more than a million dollars in net assets along with several other stipulations required by the Securities and Exchange Commission. Because accredited investors have substantial assets and are more able to tolerate losses on investments than the retail market, these investors have greater flexibility in their financial choices.