| Many people stumble upon the idea of starting an | | | | in one type of financial instrument. Where do you get |
| investment club but never take action because | | | | the money to invest? Simple. Your club members |
| there's not a good one stop shop source for good | | | | pool in the resources and in return receive expert |
| information on starting and running one. One article | | | | advice on how to invest, when to invest, and why to |
| can't fulfill that need but hopefully you can get | | | | invest. If you run the investment club from your |
| enough information to hit the ground running. Let's | | | | home, you are paid a fee for all your hard work. |
| get started with the basics of what an investment | | | | How do you run an investment club? |
| club is all about and how it should operate. | | | | Once you have started your own investment club, |
| An investment club is a great idea for running your | | | | you will have to ensure it is profitable. For this |
| own business. All investment clubs need to be | | | | purpose you will require members. Advertising in |
| registered with NAIC or the National Association of | | | | various newspapers and financial magazines is a good |
| Investors Corporation. Setting up an investment club | | | | way to attract people to your club. You can even |
| is really easy and doesn't require you to expend | | | | advertise on the Internet. As part of your office |
| much capital. Typically, an investment club has 10-15 | | | | setup you will require a desk, a computer, a phone, a |
| members and each member is required to pay | | | | fax and a printer. On the days (once a week) that |
| around $20-$50 per month as membership fee. Start | | | | the members of your club meet, you will need to |
| up costs for an investment club can range from $400 | | | | arrange chairs, projector, etc. |
| to $800. But the profit or earnings that you can | | | | How Does an Investment Club Work? |
| make from starting your own investment club are | | | | The rules of the club are fairly simple and can be |
| huge - from a modest $5000 to $20,000 annually | | | | modified if required. An investment club has officers |
| with one club, $25,000 to $100,000+ annually if you | | | | to see the day-to-day operations and these are |
| own five clubs or more depending on the number of | | | | elected by the members only. Both the officers and |
| members you have! | | | | the members are required to: |
| What does an investment club do? | | | | - Attend each meeting (weekly/monthly) |
| Investment club is a really a group of people who | | | | - Pay the membership fee - usually a minimum of $20 |
| come together with the singular aim of learning how | | | | - Research and share information by following the |
| to invest in the stock market. These people are | | | | progress of specific shares (either already bought by |
| known to each other and could be friends, family, | | | | the club or considered for purchase) |
| colleagues, neighbors etc. Your investment club | | | | Finally, it is important to understand that the success |
| offers the people a safe and easy opportunity to | | | | of your investment club depends on the involvement |
| make money without knowing how to. Your club and | | | | of your club members. As for you, spending a couple |
| invest either in shares or real estate or bonds etc. | | | | of hours everyday on the club's business will help you |
| Usually, most investment clubs prefer to invest only | | | | build good profit. |