3 Benefits of an Investment Club Association

Investment clubs have been around for centuries, successfully making money for investors of all kinds. Obviously there are numerous benefits to investment club association memberships, or else they simply would not exist. For people who are new to investing, it is likely they have not even heard of these type of investing clubs, nor would they be aware of their many advantages.

While there are many benefits, the following outlines three main benefits that are worthy of consideration by even the newest investor.

1. Larger Pool of Money. Investment clubs are able to make more money faster because the members pool their resources. A good recommendation for clubs is to have each member invest the same amount. This is easy to implement when just starting a new club, but a little more difficult when trying to jump into the middle of an existing one. For example, when a new club is formed, each member may only be required to put in $150. All profits are thereafter split equally among members.

2. Reduced Risk of Personal Loss. All investors understand that there will be times when money is lost and that it is important to stay the course and not jump ship. By pooling financial resources, an investor takes less of a hit to their personal financial accounts because their individual investment was not as large as the whole. This makes it much easier to wait out the down times and reap the rewards of being patient.

3. Circle of Knowledge. An investment club offers insight from many eyes and ears. Members have regular meetings, sharing their combined experience in determining what is happening in the market and just where money can be made. Individual members benefit from other members in this manner, increasing the group knowledge. There is also a national association of investment clubs available for clubs to gather even more information.

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