Business, Legal & Accounting Glossary
An investment club is a membership organization for investors. A typical investment club is usually oriented toward helping beginning investors gain knowledge and experience. The investment club is often focused on a particular asset class, such as stocks or real estate. Investment club members share resources, investment ideas, and other knowledge of interest. The leaders of an investment club may act as mentors to new members. In real estate, it is common for investment club members to partner on an investment. If an investor cannot find a local investment club of interest, it may be possible to find a virtual investment club. The virtual investment club uses group communication technology such as email and conference calls to replace face-to-face meetings.
A group of retail investors who pool some of their money and make joint investments. Investment clubs attempt to enable individuals to become individual investors by pooling their funds in small groups and collectively deciding how to invest the money. Like-minded investors come together to make investments based upon the input and research of the entire group, often providing a more complete foundation for subsequent decisions. Of course, members of investment clubs do not need to invest only through the club, so the club can make an excellent addition to a portfolio or it can serve as an excellent introduction to investing as an individual.
Clubs can be a benefit to investors of all skill and experience levels. It can be difficult to gain a spot in an existing club without connections or the opportunity to replace a departing member. Fortunately, starting a new club is as simple as finding a dozen or so people in one geographic area who want to participate. Members should plan to, and may be required to, contribute at least a certain amount to the club’s investment budget at certain intervals. Some clubs allow members to exceed the minimum and others do not. All investments should be researched as carefully as an individual would research them, but, because more people are involved, research can be more thorough and cover more investment opportunities.
National Association of Investors Corporation
NAIC
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Investment Club are sourced/syndicated and enhanced from:
This glossary post was last updated: 5th November, 2021 | 0 Views.