Because of the increased risk that hedge funds have the ability to take on, there are requirements by the U.S. Securities and Exchange Commission (SEC) on who can invest in them. If you are an individual, then you must be an accredited investor. This means a person must have an annual income exceeding $200,000 (or $300,000, if married) for the last two years and expect to earn the same amount, or more, in the current year. A person can also be considered an accredited investor if they have a net worth of over $1 million (single or married), excluding their primary residence value. It is important to note that there are other ways to be classified as an accredited investor, but these are the most common.