Starting an Investment Club
If you`re interested in starting up investment club, consider the following guidelines:
- Start by contacting the National Association of Investors Corporation (NAIC) for guidelines on how to start and run your own investment club.
- Host a recruiting party for friends and colleagues to acquaint them with your plans and goals.
- Choose anywhere from 10 to 40 members–most clubs average 16 members.
- Establish how your club will operate–most commonly as a partnership (the NAIC guidelines can help walk you through this step).
- Elect officers and assign responsibilities to individuals or committees to ensure that every member has an official role within the club.
- Establish a meeting schedule, place(s), and time–most clubs meet once or twice a month.
- Determine how much time each member should spend on research or other advance preparations for meetings.
- Establish the initial investment amount and/or monthly contribution–usually from $25 to $50 per month per member.
- Select a brokerage firm that will handle your trades and decide whether or not you want a broker dedicated to lending advice to the club.