Investment club was a group of investor pools their money together and the club collectively the money to propety investment, stocks investment and bonds investment. Capital gain and dividends received from the investment are reinvested on agreement with each investor of club. Investment club are organized as partnerships with each investor studying their different investment options, leaving it to the investment club to decide what type of investment. The investment
option is chosen after group of investor discussion and voting. The option getting highest vote is selected. During the meeting, investment ideas are shared within the investor in the club and discussed on a daily basis. Investor of investment club use various sources to gather investment information about stocks investment, bonds investment, mutual funds investment, etc. .
Benefits of Investment Club
Advantages of investment club
ready for new investor which lack of investment knowledge
or individual investor wants to invest but have limited
capital for investment. Investment club are the easiest
and economical bodies to form, function and sustain for
new investor. All the club members will share the profits
and losses incurred by investment club. Investor have
limited time to research several stocks every month, by
participating in a investment club, investor will be able
to share in the research of others and have the extra
bonus of investment club setting in which to discuss investment
ideas and issues. Investment club is stand from different
investor which they have different sets of values, it
is always happen conflict. When the conflict in between
investor happen, voting system is required to solved it,
and the option majority of club investor is selected.
So, an individual investor should be prepared to accept
decision made by majority of the investor even he is not
agree with the idea.