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 (, which offers guidance to new clubs, or visit 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,, provides information on how to start an investment club and support services to existing clubs.

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The Qatar Financial Centre (QFC) has announced the introduction of a legislation to allow Investment Clubs and Foundations to be set-up under its umbrella.
The Fool responds: Investment clubs are indeed excellent for beginning investors, as they provide a venue in which to learn with and from others.
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A COMPUTING specialist is aiming to cash in on the growing number of Stock Market investment clubs.
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Specifically, the NPO will send volunteers, such as former officials at securities houses, to give lectures at investment clubs.

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