By Stu Pearson
Investment clubs are created by individuals who not only want
to pool their funds together to make a joint investment but
would also like to gain knowledge on the various types of
viable investment opportunities that are available in the
market. Each member of the club contributes periodically an
agreed amount of money to purchase growth stocks by means of a
dollar cost averaging approach.
The dividends as well as the capital gains are usually
reinvested to gain more interest. The security purchases are
voted upon by the club members. This is also one way of
decreasing personal risk of club members. There are also
investment clubs that allows non-club investors to participate
in larger investments of the club provided of course that the
non-member investors receive a much lower share of
Likewise, it is also the role of investment clubs to assist
their club members in becoming more knowledgeable in all
aspects of investments. A well-known trade group for
investments clubs is the National Association of Investors
Corporation (NAIC) which is a non-profit organization that
provides guidance as well as imparting investment knowledge as
part of its membership.
A good choice of investment clubs are those that have been
around for many decades already and have a track record of
having a continuous increasing interest in the stock market.
joining investment clubs, small investors are given the
opportunity to increase their buying power, share their
collective knowledge and socialize while earning from their
investment. Another good benefit derived from investment clubs
is the fact that investors are not expected to invest a great
deal of money but still will be able to receive a greater
amount of interest that is usually possible if you have
similarly invested a big lump money.
A typical investment club usually meets once a month and
members are given individual responsibility of researching
investments and then sharing their ideas with the other
of the club. Likewise, these meeting also served as an
for members to contribute to their monetary fund, which is
intended for purchasing stocks, mutual funds as well as other
types of feasible investments.
One of the main goals and objectives of an investment club is
the opportunity to learn. Most investment clubs spent a great
deal of effort and time in research since they believe that a
well-researched investment plan has a much greater chance of
success. This is also the reason why risk is minimized when
joining an investment club.
Starting an investment club is not really that difficult and
does not require any special knowledge. In fact, a group of
friends or even co-workers can decide to set up an investment
club. This is usually a good place to start as you will know
the people you dealing with.
About The Author: Stu Pearson has an interest in Finance and
Investments. To find out how you can get more information
please visit this Investment Clubs
www.investment-club-guide.com related site.