Investing can be a tricky thing when it comes to the risks that should be taken into consideration. In fact, there are some ways that you can take into consideration if you are looking to investing but don’t want to go at it alone. Moreover, you can either join an investment club, or start one of your own. In fact, an investment club consists of members who study stocks, bonds and other investments. Here are the steps that you should follow if you want to start an investment club.
Find potential members for your club
Potential members can either be local or living far away. If they are local, it will be way better because you will be able to meet in person. However, if they live far away, you can meet online. Moreover, the club should consist of about 10 to 15 members. However, it can also work if it consists of 6 to 20 members. In fact, a small group will lead you into having a trouble in getting enough funds together in order to invest, while a large group of people, maintaining high-quality discussions and finding a place to meet become concerns.
Hold a preliminary meeting
When you find the people who are interested in joining, you should hold a meeting. Provide drinks and snacks so that they will feel welcomed. During the meeting, you need to discuss how the formation of the club will happen, the goals, the number of members who will be contributing in financial matters, the joining fee, the minimum monthly contributions, and if you will be investing from a joined account or individual accounts.
File the necessary paperwork
In order to make things work, you will need to incorporate your investment club into what is known as a general partnership, and write out the rules of this partnership and its operation and have each member sign it once you all agree. After that, write the agreement and outline all the policies discussed previously.