Investment Clubs – Getting Started
Recruitment
Recruit responsible, reliable people who are eager to learn. An investment club is only as strong as its membership.
Administration
Setting up an investment club is a real task. It requires setting up a bank account, drawing up a constitution /Byelaws. (The dfcu investment club toolkit provides you with Byelaws that offer guidelines on the issues to look out for at inception)
Learning
Even before researching individual investments, members of an investment club should familiarize themselves with different investing options and ideas on a regular basis.
Research
Finally, individual members need to develop a ‘researching’ culture where each member of the club makes monthly or quarterly recommendations on new investment ideas.
6 tips for a successful investment club
1. Live by your bye laws/constitution – To avoid disagreements.
2. Share the work – To create teamwork.
3. Stay focused – On the goals and objectives
4. Educate each other – By sharing ideas & knowledge
5. Take action – By dealing with problems immediately
Lastly but more importantly
6. Lighten up – Choose members you will enjoy having fun with.
