Investment club


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Investment club

A group of people who combine their money into a larger pool, then invest collectively in stocks and bonds, making decisions as a group.

Investment Club

A group of individual investors who pool their money and make investment decisions together. The advantage of an investment club is that it allows small investors to take advantage of a diversified portfolio when they otherwise may not be able to afford it. An investment club may be informal or it may be legally constituted. See also: Investment company.

investment club

A group of people who meet regularly and pool their funds to invest in securities. In many instances, a club is formed as much for social and educational reasons as for making profits. Since most investment clubs are formed as partnerships, their dividends, realized capital gains, and losses are passed through for tax reporting by the individual members.
Are investment clubs a good idea? Why?

Investment clubs offer many benefits with few drawbacks. The individual investor joins with a group of peers to invest in stocks and other securities. The clubs focus on education: each member learns from and teaches the others. The monthly meetings create a comfortable social setting to help the individual stay focused on investment goals. Members are usually required to contribute a minimum amount each month to the investment pool as well as commit time to do investment research. And the clubs' financial returns are often very successful. To get started, contact the National Association of Investors Corporation (www.better-investing.org), which offers guidance to new clubs, or visit www.bivio.com and register to connect with others.

Sharon Rich, Financial Planner, WOMONEY, Belmont, MA

Investment club.

If you're part of an investment club, you and the other members jointly choose the investments the club makes and decide on the amount each of you will contribute to the club's account.

Among the reasons that clubs are popular are that they allow investors to commit only modest amounts, share in a diversified portfolio, and benefit from each other's research.

While clubs may establish themselves informally, many groups use the resources of BetterInvesting, an investor education membership organization.

Its website, www.betterinvesting.org, provides information on how to start an investment club and support services to existing clubs.

References in periodicals archive ?
org, fax to 020 7220 1731 or send on a postcard to: Mirror Investment Club Competition, ProShare Investment Clubs, Centurion House, 24 Monument Street, London EC3R 8AQ, to arrive by March 17.
Wilkins, and members of her online investment club, use technology to research investments and manage the club's portfolio.
BUYandHOLD recently partnered with bivio, the leading provider of investment club services, to help individual investors create, organize and manage their own investment clubs online.
Add the code word: "Valentine" and your ProShare Investment Club number to make your entry valid.
That's what Eddie Bossette, of the Organization Investment Club (OIC) of Beaumont, Texas, believes.
To learn how to start an investment club or invest on your own using NAIC's time-proven methods, contact NAIC, 711 West 13 Mile Road, Madison Heights, MI, 48071.
BACKING a loser has proved a winner for the BDS Investment Club in Slough.
1 site for investment clubs, today announced a co-marketing agreement that will bring a new and valuable range of financial services to bivio's investment club members.
The Key investment club from Romford, Essex, correctly picked fund manager Amvescap as last month's best-performing share.
According to Greer, an investment club is a great educational tool.
The average NAIC member invests $38 per month in an investment club.
IT'S second time lucky for the RISCers investment club from Retford, Notts.

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