Start An Investment Club

2 women having a discussion with the text "Start An Investment Club" and the Motley Fool Logo

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Investment clubs serve as a terrific way for those new to investing to learn more about it in a friendly group setting. Many people are terrified of taking their first investing steps. But investment clubs make this a relatively painless experience. Members cough up modest sums and invest carefully together after deliberating over the pros and cons of any action.

A first step

Many members eventually find that the clubs guide their own personal investing. After a while, their equity in the pooled club account may be relatively small compared with their separate personal accounts. Club meetings will offer many good ideas about attractive shares in which to invest — and while the club may buy a few shares, members often go home and buy more shares for their own accounts.

Shared rewards

You may not have the time to research several shares each month on your own, but by participating in a club, you’ll share in the research of others and have the extra bonus of a group setting in which to discuss investing ideas and issues. Thus after a while, your club may have the additional benefit of becoming a mini-Motley Fool — a forum to discuss investment ideas and issues.

In brief

Here’s a brief summary of why you should consider starting or joining an investment club:

  • If you’re new to investing, it’s a good way to get your feet wet.
  • If you’d feel more comfortable learning about investing with others than on your own, then this is for you.
  • It’s a good way of putting aside a small amount each month, if you have roughly £10 to £50 that you can invest through the club each month.
  • If you’ve been putting off learning about investing and sense that having a responsibility to the group would provide some much-needed discipline, than a club could help immeasurably.
  • If you think it would be fun to have a group of people with whom to share company research and discuss investing topics.
  • If friends have gently suggested that it would be good for you to get out of the house once in a while!

For more information about investment clubs, see this Fool guide.


Looking for more investment ideas?

Identifying the best investment opportunities requires long hours of in-depth research. But having a true ‘edge’ can make all the difference to your portfolio’s returns, especially during a bear market like this one.

That’s why, when it comes to helping to select their next investment, thousands of UK investors turn to Motley Fool Share Advisor. Led by a world-class team of expert investors, The Motley Fool UK’s flagship share-tipping newsletter alerts its members to 2 high-potential, high-conviction UK and US stock recommendations each and every month.

These are the sort of investment opportunities that could help contribute to life-changing scenarios. And right now, you can access ALL of them for just pennies a day.

So if you’re eager to start aiming for better investment returns, then don’t wait another minute… Start your Motley Fool Share Advisor membership — backed by our iron clad 30-Day Subscription Refund Guarantee — TODAY.


[Static_FreeReport]

This article contains general educational content only and does not take into account your personal financial situation. Before investing, your individual circumstances should be considered, and you may need to seek independent financial advice.  

To the best of our knowledge, all information in this article is accurate as of time of posting. In our educational articles, a "top share" is always defined by the largest market cap at the time of last update. On this page, neither the author nor The Motley Fool have chosen a "top share" by personal opinion.

As always, remember that when investing, the value of your investment may rise or fall, and your capital is at risk.