Investment Clubs: 5 Things You Must Know Before Joining An Investment Club

Investment Clubs: 5 Things You Must Know Before Joining An Investment Club
Investment clubs are a great way to learn how to invest in
stock or real estate. They are becoming increasingly
popular. It is wise, however, to follow some simple
guidelines before joining an investment club to be sure
that you know what you're getting into.

1 Local vs. online investment clubs
If you enjoy socializing or face-to-face interactions, then
joining a local investment club may be the best option for
you. Members typically meet once a month. Local investment
clubs often invite investing professionals or experts to
speak at meetings. These talks are excellent opportunity
for members to learn from others' investing experience and
to ask questions.

You can easily find local investment clubs through word of
mouth. Ask colleagues, neighbors, friends and relatives for
recommendation. Chances are they may belong to a local club
or know of someone who is a member of a local club.

Online investment clubs offer convenience. They usually
have virtual chat rooms or forums where people can post
questions and answers. If you don't have as much time to
mingle with others or attend local meetings, then you may
be suited to joining an online investment club.

2 Investment capital
Determine how much you can afford to invest. Some clubs
have set minimums that must be met for investments. The
beauty of investment clubs is that members pool their money
to invest jointly. So, you don't need to have massive
capital to begin investing.

3 Investment period
Make sure that you find out how long your money will be
tied up before making any investments. Some clubs have set
rules on the minimum length of time for an investment.
Don't get stuck paying a penalty that will negate any
potential profits from your investment.

4 Beware of scams
Get rich quick schemes are abound, especially on the
Internet. If something looks too good to be true it
probably is. Most legitimate clubs don't charge joining
fees. Before joining an online investment club, check out
its reviews by other members. Determine how long the club
has been running and its investment performance.

5 Read the fine print
Before signing anything, read everything over thoroughly.
Be sure that you understand your commitment and are
comfortable with the terms and conditions of the investment
club. Check for any hidden fees or penalties for early
withdrawals.

Investment clubs can be an interesting and fun way to learn
and invest. As long as you make wise decisions and keep a
diverse portfolio you will likely be able to make some
decent profits through your investment club.

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Investment clubs have been growing tremendously in recent
years. Many people who feared about investing on their own
have reaped the rewards by joining or starting an
investment club. Learn more about investment clubs and at
http://www.aboutinvestmentclub.com/art-join