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 ?
Domestic and regional investment clubs and foundations have been allowed to be set up under the Qatar Financial Center (QFC), a move that could greatly facilitate the high net-worth segment.
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 BetterInvesting Top 100 Index comprises the most popular holdings of investment clubs, employing annual data from themyICLUB.com online club accounting programme.
"Investment clubs are a great way to learn about investments and to get more knowledgeable about the stock market," says Lanta Evans-Motte, a financial adviser at Raymond James Financial Services in Beltsville, Maryland.
Student investment clubs provide the rigor and risk to foster learning opportunities from financial literacy to preparing students to compete in today's global economy.
"We started the investment clubs around 18 months ago," says David Clark, the ABA head of investment who runs the club programme.
PROPERTY investment clubs have mushroomed in Britain over the past few years.
The Vikings and other Mirror investment clubs have another chance to win pounds 1,000 in our Footsie Flyer competition, in partnership with Proshare Investment Clubs and Abbey Sharedealing.
Most investment clubs create some guidelines--commonly called "screens"--that weed out companies that don't meet specific criteria.
IF you fancy dabbling in the stock market but are too scared to go it alone, then you should try one of the new investment clubs that are taking off around the country.
A COMPUTING specialist is aiming to cash in on the growing number of Stock Market investment clubs.
Even though the stock market has hit a troubled patch Mr Bond believes investment clubs are still a good bet.

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