Investment clubs

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5. Joining an existing club

According to ProShare there are over 10,000 investment clubs already running in the UK, and 150 new ones being set up every month. When you consider that 15 years ago, hardly anyone in the UK had heard of the concept, the growth has been rapid, and it shows no sign of slowing down.

It should not be difficult for you to find a club near where you live or work, and joining an existing club can be easier than setting one up from new.

Places to look are:

• in local papers
• in specialised journals like the ProShare newsletter
• on websites

The internet, in particular, is emerging as the key place where like-minded investors can meet and form clubs. The big investing portals all have sections devoted to clubs,and some send out email bulletins targeted at clubs which include a 'Join a Club' facility.

There are also websites focused entirely on the world of investment clubs. These can be useful not only for finding a club, but also for discussion of investment strategies, news about companies, and help with administration.

If you find a club that you think you would like to join, ask them the following questions:

1. What are the aims of the club?
2. What is its investment strategy?
3. How long are they expecting the club to continue?
4. Who makes most of the investing decisions?
5. How much turnover in membership has there been since launch?
6. Do you trust the people and can you work with them?
7. How often does the club meet, and how many of the members usually turn up?

You should also expect them to ask you some searching questions. A club that is totally undiscriminating about its membership is probably not one that you want to join.

1. What is an investment club? 2. A simple explanation of how it works 3. Why join an investment club? 4. Deciding on your aims 5. Joining an existing club 6. Preparing to launch a new investment club 7. The draft constitution and rules 8. Drafting the investment strategy 9. Example of an investment strategy 10. Attracting members to your club 11. Preparing for the inaugural meeting 12. The inaugural meeting - appointment of officers 13. The inaugural meeting - key decisions 14. Things to do after the inaugural meeting 15. Starting the processes 16. Running the first meeting 17. Regular meetings - the key to success 18. The cash account 19. The capital account 20. The asset register 21. The annual general meeting 22. Tax 23. Performance measurement 24. Dealing with a member leaving 25. Conclusion

• ProShare Investment Clubs Looseleaf Manual
• The Motley Fool Guide to Investment Clubs
• The Company of Successful Investors