Why start or join an investment club?
There are basically three reasons to join an investment club—education, fun, and potential financial gain. The club hopes to do well and make profits; however, financial gains are not guaranteed. Clubs provide a social atmosphere that makes learning about investing fun. Investment clubs differ from other clubs, however, in that individuals are not merely members of the club but are “partners.” Typically, there are 10 to 20 partners in a club. Partnership agreement forms are filed and guidelines are established for the club. Guidelines include how much and how often partners must pay fees to the club and how to withdraw funds paid in and profits made. Guidelines are also set for the order of business at each meeting. A typical club meeting will have an update from the treasurer, an educational program, a presentation by partners presenting stocks or investments to buy, and updates from partners who are “watching” the club’s current investments.
