Investment Clubs
Investment clubs are a way of individuals getting together in a group to club together to make investments. The individuals may be friends, work colleagues or people who come together in other ways such as members of clubs and associations, for example.
The members of an investment club will get together on a regular basis to discuss their portfolios and to make decisions on whether to buy or sell investment products. In many cases the members will make a cash contribution either on a regular basis, at a pre-agreed point or whenever they meet. This cash will be used to invest in future purchases. Clubs will usually have a joint bank account into which investment capital and other monies such as profits and the money made back from selling investments will be lodged before being used again or shared out to members of the club.
Many investment clubs will work on a purely democratic basis with every investor having to agree to a deal before they can invest in anything. Others may appoint a leader or manager who will make decisions for a set period of time. And, some will have each member take turns in recommending which investment products to buy and so on. In many cases clubs will elect people into certain roles to ensure the smooth running of the club.
Many people that join investment clubs will actively look to learn more about investments and the financial industry as a whole and the club meetings here may also each be devoted to a specific member giving a talk or presentation on some aspect of investment to help educate the other members.