Investment Clubs

Guide: Getting started

An introduction to setting up a club

With investment clubs a little can go a long way. Members agree to contribute a regular amount of money.

The money that each member contributes to the investment clubs can be pooled to buy significant share holdings - and the cash available soon mounts up.

The most common amount contributed to an investment club is just £25 per month.

When you have set up a club then members meet regularly to decide on where to invest the money.

You may have no knowledge about the stock market itself, but you will certainly have knowledge from your work, your hobbies or just life in general which will mean that you have expertise of a particular industry, company or service to contribute to club meetings.

If you are an experienced investor, you will enjoy sharing your interest with friends or colleagues and while you might give some less experienced members the benefit of your stock market knowledge, you will certainly learn something from other members because they will have knowledge of different sectors and companies through their work or leisure pursuits.

The research involved in investigating companies can be shared between members, as can the cost of information. And of course you can use free services such as Digital Look to stay in touch with your portfolio both through the internet and e-mail alerts.

So by pooling information, investments and knowledge, investment clubs can be a relatively risk-free way to get involved in the stock market.

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