Investment Club; A beginner’s entry into Investing.

We have recently gone through different investment vehicles, on the assumption that capital is not an issue. In reality, not everyone can afford to raise their own capital to venture into investing, especially those that just finished university/college with little savings (financial base). You most probably will have to borrow funds to get yourself going, and in all honesty you will find it hard with little savings or a security to convince a bank to lend you any money to invest, or even start a venture. Once you walk into a bank, they will most likely be interested in your personal profile and employment background as a way of assessing your ability to pay the loan. Your options become limited, meaning you miss out on great opportunities to grow your money if you do not have savings to start you off, or a high paying job. Even if you manage to be among the lucky few, the banks will probably lend you at a rate higher than the average borrower. This is where; an investment club can bridge the gap for those that intend to get into investing, but do not yet have enough savings to get going. If you have ever bought any sort of investment/property/asset in the past, you will realize how difficult it is to raise the initial capital. If you have like minded relatives, friends, and even neighbors, it may be time for an investment club. An investment club will allow you to save the monthly/bi weekly contributions from which you can invest jointly. You could do investing in Stocks, Real Estate and even other opportunities. The investment could be done in your country of residency, or could also be done in emerging markets. Those people that join the club must have a shared objective, and the pooled resources should be invested in various projects with an aim of getting a profit, or better yield without having to borrow the capital, hence avoid the interest paid for taking a loan to invest. One of the advantages of the investment club would be to promote a regular habit and routine of contributing to savings and also a focus on long-term investing for the club. For those that are not investment savvy, it will allow them to learn from people who are able to do the research and also the exchange of ideas among the members. It will also allow you to reap from being able to buy larger investments that you could not do by yourself. An Investment club is a good way to allow friends, colleagues or professionals with diverse interests, experiences and ways of seeing things to do their investing as long as they share the same values, and are willing to take on responsibilities and ensuring rules are established from the go.