Investing For Beginners – Free Investment Articles and Tutorials

Investment clubs are groups of 15 to 20 people who come together to form a partnership for educating themselves about investments and earn profits from their collective investments. These clubs have their own bank and brokerage accounts. They elect officers to organize and conduct meetings and manage the club’s administrative matters.

Members of an investment club meet periodically to discuss various investments. They then decide to invest the pool money on the basis of a majority vote. Generally the investments are made in stocks. Each member of the club is required to pay a monthly due.


Advantages of investment clubs:

• They are an excellent source for learning about investing. Club meetings have great educational value.
• Due to their educational value, investment clubs can be a great vehicle for beginners.
• You don’t need a lot of money to become a member of an investment club. Most clubs require members to contribute between $25 and $100 per month.
• You can learn great deal from the experiences of more experienced investors.
• Profits can be earned from the monthly dues that are collected from each month and invested.

The National Association of Investment Clubs (NAIC) based in Royal Oak, Michigan, was formed in 1951. It recommends four conservative principles for investment clubs:

• Invest a set sum once a month in common stocks, regardless of general market conditions. This helps you obtain lower average costs.

• Reinvest dividends and capital gains immediately. Your money will grow faster if earnings are reinvested. This puts compound income to work.

• Buy growth stocks (companies whose sales are increasing at a rate faster than the industry in general). The companies should have good prospects for continued growth. They should be stronger companies five years from now.
• Invest in different fields. Diversification helps spread both risks and opportunity.

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3. The benefits of an investment club
4. Investment Clubs for Beginner Investors
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