Joining an investment club could prove to be an exciting and enlightening experience especially for those who just starting their career in investment. Getting into the market early is crucial to your financial success and this also the reason why joining an investment club can be beneficial.
There are two prevailing types of investment clubs that exist at present—those investment clubs that are purely educational in orientation and focus more on teaching investment principles and make use of simulations rather than real money. The second type of investment club is an organization wherein club members invest pooled cash into the market. This type of an investment club usually forms a legal partnership. Whichever type of investment club you may choose you can be assured of gaining some very useful knowledge on investment.
Starting an investment club
Whether or not you have decided to join an investment club your decision would still depends on your objectives as well as your investing personality. To know if you are eligible to join an investment club there are certain requirements you need to be qualified first and these are as follows:
• You are a novice when it comes to investment
Investment clubs are ideal for novice investors since it is a fun and educational way of learning the market. The assigned individual tasks to members’ helps in increasing the knowledge on investment. Likewise, the sharing of investment ideas from members also helps in understanding more the investment market
• You need a structure to help you keep on track.
Constancy is key for successful long-term investment endeavor and club membership is a great way of ensuring that you regularly invest. Club membership can provide you with sufficient experience should you ever decide to invest individually in the market.
• You feel that you need to diversify your investments.
Investment clubs help their members in spreading their investment among more stocks than they are likely would be able to as an individual investor. Also the investment risks are lessened to a large extent.
• You need to have the desire to contribute to the club as well as free time
Your contribution may not always be in the form of money although it is required from club members to contribute to a common fund. Your contribution may also be in the form of knowledge on investments gathered through research and shared with the other members.
• You are an investment person
This means that you believe in what investment clubs can do for you. And also you have confidence that investment club can provide you with the important knowledge that you need in order for you to have a successful investment experience.
• You like the social aspect of an investment club
Although, most of the monthly agenda of an investment club is given over to investment there is also the opportunity to make friends among your investment club colleagues.
If you still believe that investment club is what you need, then you will have to find a group that fits your investment principles. There are many reputable investment clubs which you may choose from or you could choose to start one up yourself. Have a look online for existing clubs or for tips on setting up your own.