What is Investment Club?

What is an Investment Club?

An investment club is a club of investors to discuss investment ideas and opportunities. Investment clubs are good for individual investors who need to discuss investment ideas and generate money for investment. Members of investment clubs can either discuss investment ideas and / or pool money to invest in stocks, mutual funds, bonds, securities and other investments.

Benefits of Investment Club

  • Fund: An individual may not have enough fund for investment. An investment club can collect fund from members and invest in diversified investments and make better profit that can be shared among members of the club.
  • Knowledge: These clubs widen knowledge base. Members discuss their ideas and experiences that increases knowledge. Members can learn from practical experiences.

How to Form an Investment Club?

Investment Club
Investment clubs can be formed by family members, colleagues, friends and even society members. Here are the steps to form an investment club?
  1. Send emails, SMSs or memos to people whom you want to join the club. Mention a date, venue and agenda for meeting.
  2. In the meeting, discuss about investment goals, risk profile and fund needed.
  3. Assign jobs like research, picking right stocks etc.
  4. Make rules for joining and leaving the club.