How to Start an Investment Club

To start an investment club, you will need to do a number of different things. An investment club can be a very rewarding organization for you to be a part of. Here are the basics of how to start an investment club that will be successful.

Locate Members

In order to start an investment club, you are going to need to find some members for the club. You need to find people with whom you have good relationships and who have some interest in investments. If you have previously talked to any of your friends about investments, you might want to contact them first. Family members who are interested in the markets would be another good category of people to talk to. Start out by mentioning the idea of an investment club. If the individual does not sound very interested in the idea, move on to someone else. Keep talking to people until there is enough interest to get started with an investment club.

Set Up a Meeting

In order to get things started, you will need to set up your first meeting. Come up with a time that everyone in the club can get together and discuss the future of your investment club.


In the first meeting, you will need to discuss the purpose and the goals of the investment club. You need to decide how much money each individual is going to invest. Ideally, it would be good if every member could invest the same exact amount of money. This will make things easier later on down the road. However, there are ways for certain members to contribute more money than others. Decide how much you are going to contribute to the club on a monthly or quarterly basis for additional investments.

In addition to deciding how much money you want to contribute, you should try to decide what your investment goals are. Talk about what you want to accomplish with this club from an investment standpoint. For example, you might want to double the money of the group every five years.

Investment Strategy

In addition to talking about the general goals of the club, you also need to discuss your investment strategy. Let everyone in the club have some input. You want to discuss many different investment strategies and then settle on the strategy for your club. In most cases, you will want to take a long-term approach to investing. With a large group, it is much more difficult to utilize a short-term investment strategy.

Many investment clubs will utilize investment strategies set forth by the National Association of Investment Clubs. They utilize a strategy that includes dollar cost averaging, reinvesting all dividends and investing in growth stocks. Although you do not have to utilize this exact strategy with your club, it can be a good place for you to start.


You also need to come up with rules as to whether you will accept new members and how payments will be made to existing members. Come up with an organized plan to handle the dissolution of the club at some point in the future.

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