What is an investment club?

An investment club is a group of people who meet regularly and pool together some of their surplus cash to invest in the share market. This common interest in investing may bring together friends, families, neighbours or work colleagues. The most important thing is that you all share an interest in learning more about investing in shares.

A major aim of investment clubs is to help members learn from each other. The club represents a pool not just of funds, but also of knowledge, information and experience. Risks and costs are shared, and the pooling of funds means you can invest in a range of shares with a relatively small outlay required from each member.

Investment clubs are popular around the world, and have a history dating back to the late 19th century. The earliest club on record started in Texas, USA, in 1898. The National Association of Investment Clubs of America (NAIC) was formed in 1951. The NAIC today has nearly one million members in more than 60,000 clubs. Investment clubs are also popular in Britain, with more than 12,000 clubs formed in the past decade.

Starting your investment club

Running an investment club

Resources

As well as making use of the ASX website, we recommend you do further research into investment clubs. Getting the right members, setting things up properly and having the management of your club well-organised sets you on the best path for sustained success. 

Next topic:  Why start an investment club?

Disclaimer:  The Investment Clubs material contained on this website is for educational purposes only and does not constitute financial product advice or legal advice. Whilst the information contained in the Investment Clubs section has been prepared with all reasonable care from sources that ASX and its related bodies corporate ("ASX") believes are reliable, ASX does not represent or warrant that the information is complete or accurate.  ASX does not represent or warrant that your investment club will be in compliance with any Federal, State or Territory laws.  You should consider obtaining independent advice before making any financial decision. Any pro-forma document contained in the Investment Clubs material are for information purposes only.  You should obtain your own independent legal and financial advice.  To the extent permitted by law, ASX accepts no responsibility or liability for any loss or damage arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material.