If you have a group of friends or colleagues who have shown an interest in investing their savings in the stock market, bond market, real estate or private equity you can approach them to join your investment group.
Like minded people...
The important thing to remember is that you want to attract people who are like-minded and who have an interest in learning more about the investment markets while they invest their savings.
People who bring different skills to the group...
As much as possible, you should aim to include members who bring different, value-added skills, e.g. financial, legal, entrepreneurial and engineering, to the investment group. However, this diversity of skills is not critical to the success of the group. The most important attribute that must be common to all members of the group is like-mindedness, commitment and a common purpose to develop a successful investment group.
Limited investing experience among group members is not a problem
Don't be too worried about being part of a group of people that have no experience in investing since there are many resources that are available to help you learn about investing and the process that you need to follow.
Prior to your first meeting with those people interested in joining your investment group you should provide them with information about the group. This includes letting them know what the group is going to be about and how it should be run.
Once you have found the members of the group...
The following process should then be followed:
- Hold your first investment group meeting: to discuss and agree on...
- Common purpose of investing savings for the long term
- Organization and governance
- Commitment
- Investment strategy
- Member contributions
- Meeting times
- Meeting place
- Investment group name
