"Risks of Average Americans Investing in Wealthy-targeted Investments, Warn Experts"

More investors are gaining access to private investments previously reserved for the wealthy, but experts warn that it may be risky for some to participate. Private investments, such as private equity funds and venture capital funds, typically require investors to be "accredited," meaning they meet certain income or wealth criteria. However, these thresholds have not been adjusted for inflation, resulting in a dilution of the "accredited" status. While private investments can offer higher returns, they also come with unique risks and a wider dispersion of returns compared to public markets. Experts advise investors to only invest what they are willing to lose and to consider mutual funds and ETFs as a more suitable long-term approach for most people.