Investment is always a game of numbers. In fact joint investments have the advantages of increased investment thresholds, a diversified balance of ideas and the temperament brought about by knowing that investments are a joint not a singular risk.
Investment clubs range from simple traditional merry-go-rounds where members contribute cash to one member every month, to more formalized groups that have strong corporate governance structures and a diversified investment portfolio.
An investment group should be driven by a simple objective of securing future financial security for its members.
This group could be made of a group of friends or colleagues who have shown an interest in investing their savings together in joint investment like the stock market, bond market, real estate or private equity you can approach them to join your investment group.
The trick in investment clubs is that members not only want to increase their wealth but also share the same passion for investment, despite of the fact that their individual experiences of profession might be different.
In fact divergent careers help to safeguard collective interests as the club manoeuvres through the process of identifying and analyzing good investment ideas.
Investment clubs can help an individual who cannot raise a minimum capital to participate in a juicy but large investment alone still be able to participate and share the spoils.
It also gives investment security through diversification. On the social front, though engaging with like-minded people who believe in sensible use of income, one builds their financial discipline and helps keep away from the spend-away crowd.
However, as an investment clubs grows and becomes complex, the advice of proper investment advisors becomes crucial. As members get involved in complicated investments, legal and tax advice from real professionals comes in handy to avoid being conned.
And since members would be expected to have their day job or preoccupation; it is important that these advisors give their full professional efforts to the day to day management of the club’s investment.