Would you join a safe stock market investment club where you met regularly with friends to have a good time, learn something, and hopefully make some money? If you said yes to that statement, you might want to consider joining, or starting your own, investment club.
An investment club is simply a group of people who share an interest in the stock market pooling their resources into one large investment. Investment clubs are long-term commitments. They are a wonderful way to get to know the stock market, have a good time, and, over time, make some money. But making money should not be the primary reason to join an investment club – since investing is always, even in a shared setting, a risky venture.
Generally, an investment club has between 10 and 40 members, though many seem to settle around 16 as a good number. Decisions on investing are made democratically, either in a one person, one vote fashion; or with weighted votes, where each person`s voting strength is determined by the amount they have invested in the safe stock market investment club. Safe Stock Market Investment Clubs can be partnerships, or corporations, though partnerships are more common. They can meet monthly, or twice monthly. They set up different committees, they research stocks in different ways, they each have their own investment goals.
Investment clubs are as individual as the investors that make them up. What they have in common is a desire to get to know the ins and outs of the stock market. To come together with like-minded people to realize more from your investment capital, over the long-term, and to enjoy yourself while you are doing it.
Enjoyment is a key part of an investment club. If you`re not having fun while you are participating in the safe stock market investment club, it`s probably not the safe stock market investment club for you. And it should go without saying that if you are looking to make a quick profit, an investment club is not the place to be.
Unfortunately, it`s often difficult to join an established investment club. Many of them have been operating for years, even decades, with the same members and they aren`t likely to grow. Which leaves many hopeful club members with the option of starting their own safe stock market investment club. This is a great option, but it should be considered carefully. Make sure that you fully understand what needs to happen for your safe stock market investment club to be successful, and be sure you are starting for the right reasons. Here are a few points you might want to consider:
Are you being realistic?
If you`re starting an investment club to make a large profit in the stock market, you`ll likely become very disappointed. The goal of an investment club is to learn more about the stock market, and to have fun. If you have dreams of becoming rich you`ll be starting the safe stock market investment club for the wrong reasons. Remember, joining an investment club means joining for a long period of time.
Are you willing to be an amateur?
Starting an investment club won`t make you an expert in the stock market overnight. In fact, an investment club is ideal for a group of amateurs who want to learn about how the stock market works and what it can do for them. An investment club is a safe environment in which you can invest without the worry of losing a large amount of your hard earned dollars when something unexpected happens.
You can start with a little.
Don`t think that you need a lot of money to start an investment club. You can set a minimal fee for each month`s contribution that will fit into your budget. You can determine what that minimum monthly contribution should be when you have your first meeting of the investment club.
There is strength in numbers.
On your own you may not have enough money to invest in the stock market in a way that will let you realize a reasonable profit. However, when you combine your investment dollars with the dollars of others in the safe stock market investment club you`ll have a significant amount of money to invest in the stocks that you think may be successful. Keep in mind that just as there is strength in numbers there is also a shared sense of security when you`re not investing alone.
Do you like democracy?
One thing that you should keep in mind is that your voice will be part of the larger group and you may not always get your way. If you`re unable to sit back when you`ve been outvoted on a favourite stock, and let another investment choice be made, then an investment club might not be for you.
Can you be satisfied with a learning experience?
You should be prepared to never realize a profit from the stock market. One of the key parts of an investment club is the benefit of studying the stock market with other people with the same interests as yourself. If you never make a penny you should still be happy with your participation as part of an investment group.
Investment clubs are great ways to get to know the stock market in a safe, supportive, and fun environment. Starting your own investment club will make sure that you have a safe stock market investment club that will closely reflect your interests, though there will be compromises in any group setting. Friends, fun, a chance to study something you are keenly interested in, and a chance to make money. An investment club can be the best of all worlds.
Investment insurance plan is an instrument that acts like an investment tool and provides you benefits of a life insurance plan simultaneously. Simple reasons to buy investment insurance plans:
* You can make goal-based investment i.e. investments can be made keeping educational needs, marriage, retirement needs or for a business venture
* You get peace of mind that your dependents will be taken care of when you will not be around them any more
How Investment Insurance Policy Works?
Any investment insurance plan fulfills two basic requirements i.e. investment as well as insurance. Therefore, when you acquire an Best Investment Plan in India, a part of your funds are used to provide your life cover while the rest of the part is invested in financial instruments of your choice.
The best investment insurance plan lets you utilize your savings in a systematic and planned way. You are able to choose the number of years for which you want to make an investment. Also, you are able to choose the kind of instruments you want to invest in as per your risk appetite.
Any investment insurance plan proves to be best investment plan if it suits your requirements and long term financial goals and guarantees to provide protection to your loved ones in your absence. Hence while choosing the plan you need to consider various aspects like your age, the number of years you want to invest for, the goal for which you want create funds for, your ability to pay i.e. the amount you are willing to invest as premium as well as your risk appetite i.e. the how much you are able to keep at risk if a part of your funds is invested in equity or unit-linked instruments.
On reaching the maturity, you are eligible to receive the sum insured or the maturity benefit which includes guaranteed additions and bonus, if any. In case the policy holder dies before the maturity period, maturity benefits along with guaranteed additions and bonuses is paid to his nominee.
Types of Investment Insurance Plans in India
Generally, investment insurance plans can be categorized as:
* Unit-linked insurance plan
* Traditional/endowment plan
* Guaranteed return plan
Benefits of Online Investment Insurance Plans
* You get a secured source to invest your funds
* You get to choose the number of years you want to invest for
* You are able to make goal-based investments
* You get maturity benefits on surviving the term of the policy
* In case of the death, the nominee receives the death benefit and hence the family is financially protected during the most unfortunate times.
* The premium paid for investment insurance plan is eligible for tax deduction U/S 80C and 10(D) of Income Tax Act.
* You are able to get a secured loan against the corpus built by you through investment or the surrender value of the policy at that point of time
* You need not put your funds at two different places. Single source fulfills your investment as well as insurance needs
* The amount paid as premium as well as yield on the investment made can serve to fulfill the retirement needs of the policy holder
* In case, the policy holder does not want to continue with the plan, he can opt to surrender and receive the surrender benefits , however it can be done after a specific period or as defined by the insurance company of your investment plan
Several thoughts go behind making a smart real estate investment. Though a safe investment, it’s important to analyze all the permutations prior to investing in real estate as at times there could be some risk involved.
In today’s intensely competitive market, one needs to be smarter and must do a proper research and keep a good knowledge about the market. Issues are many and they need to be addressed while investing in the real estate sector. Given ahead are some points that will help you to make a wiser decision while investing in this sector.
Tips to Invest Wisely in Real Estate
Make a Fixed Budget
It’s very important for everyone wanting to invest in a residential or commercial property to keep a fixed budget and more importantly stick to it. This is because, it’s very easy to get carried away with the properties you like and which are beyond your budget. So, there is a word ‘PLAN’ which is the key here, as you can land yourself only into trouble if you go over the budget. Thus, it’s necessary to think other than mortgage payments as well.
Search for Alternatives
One of the best ways to make a smart purchase is to explore different alternatives. It’s important that you inquire about local investment properties and converse with as many real estate developers as possible so that you know about the ongoing rates. If you are interested in buying a property then you need to note down the prices and property details from the developers and then come to a decision. It’s also seen that those who explore and research their area tend to bag a better deal than those who don’t.
Look for Long Term Benefits
There is a significant amount of capital invested in any real estate transaction, and thus you need to think of long term investments prior to making a deal. You must think as to what you intend to do with the property 5 to 10 years down the line. It’s necessary to evaluate the value of the property in the coming years. Evaluating long term goals is extremely critical in real estate investment.
Speak with an Expert
You can make a better income property by taking advice from a real estate expert prior to investing. This is because these experts have a better understanding about the dynamics of the market and will guide you in getting a good deal. You can also invest in real estate companies such as Excellence Shelters Pvt Ltd. It’s one of the trusted companies from Pune, that offers NATP sanctioned plots for investment. These plots are loaded with several offers and amenities and you can make your hard earned money worth by investing in these plots. The company has launched several of its plotting projects in the past out of which Aurum city is the one to look for. The company has also come up with a new plotting project called ‘Celebrations’ where you can get NATP sanctioned plots at affordable prices and that too loaded with several amenities.
Examine the Property
This is a very important point to remember, as examining the property before closing the deal is extremely essential. This is an extremely important feature of real estate purchase and you should not ignore it. If required, take the help of someone who can tell you the exact price of the property and help you get a good value for your money.
Go Through the Documents Properly
Last but not the least, read all the documents well before buying. Ensure that there are clauses that lets you back out from the deal if you find any flaws in them.
Making your income properties needs smart investment in the realty sectorFeature Articles, one effective way can be to buy them from top real estate companies.
The definition of an investment club is simple: a group of people who share an interest in the stock market pooling their resources into one large investment. Defining how an investment club works is more complicated.
In most cases the investment club will be registered as a partnership and the members of the club will make decisions together on what stocks they consider to be a good investment risk.
The majority of the time the investment decisions will be made after some research has been done regarding the stock that is under consideration. This will be discussed at length further in this book.
An important feature of an investment club is that the members are there to have fun as they invest their money and learn about the stock market. Making a profit isn’t the only goal of the club and members are encouraged to have fun as they invest their money.
An investment club isn’t for those people who are looking for a fast way to make some easy money. People who want a quick turn around are discouraged from joining an investment group and investing on their own.
A main feature of the investment group is to start to learn how to invest your money and to invest for a long term rather than a short one.
There are several things that you should keep in mind if you are thinking about starting an investment club or have in interest in joining one that already exists.
Make sure that you understand all the reasons why you should start an investment group and the requirements needed to be successful as a group. The following is a list of important ideas and information that you should consider before starting your club:
* Be realistic. If you’re starting an investment club to make a killing in the stock market, you’ll most likely be very disappointed. The goal of an investment club is to learn more about the stock market and if you have dreams of becoming rich you’ll be starting the club for the wrong reasons. Joining an investment club means joining for a long period of time.
* Expect to be an amateur. Starting an investment club doesn’t mean that you have to be an expert on the stock market. In fact, an investment club is ideal for a group of amateurs who want to learn about how the stock market works and what it can do for them. An investment club is a safe environment in which you can invest a little bit of money and not worry about losing a large amount of your hard earned dollars when something unexpected happens.
* Amount of money to invest. Don’t think that you need a lot of money for investment purposes to start an investment club. The opposite is in fact true: you don’t need to have a lot of money to invest to start an investment club. You can set a minimal fee for each month’s contribution that is fits into your budget. You’ll have the chance to determine what the minimum monthly contribution should be each month when you have your first meeting of the investment club.
* Combined investment money. On your own you may not have enough money to invest in the stock market in a way in which you may be able to realize a profit. However, when you combine your investment dollars with the dollars of others in the club you’ll have a significant amount of money to invest in the stocks that you’ve been watching and think may be successful. Keep in mind that just as there is strength in numbers there is also a shared sense of security when you’re not investing alone.
* Diplomacy. One thing that you should keep in mind is that your voice will be part of the larger group and you may not always have a say in which stocks you want to invest in. If you’re unable to sit back and let another decision take the place of something that you would rather see, then an investment club might not be for you. You’ll need to have the ability to let the majority rule whenever a decision is made.
* Learning experience. You should be prepared to be satisfied to never realize a profit from the stock market. One of the important goals and features of an investment club is that you benefit from the learning experience of being with other people with the same interests in the stock market. If you never make a penny you should still be pleased with your participation as part of an investment group.
Starting your own investment club will be a pleasurable, and perhaps profitable, way to spend time with other people that share the same investment passion that you do.
You’ll be able to learn about the stock market in a safe and secure environment with other people that understand your fascination with the stock market.
Investors who decide to make a purchase now should make sure that they have solid financing and they have a sufficient deposit that would protect them from negative equity. It is also imperative to choose locations and properties that maintain flexibility even in rough markets, are attractive to other buyers and provide the potential to add value.
When considering an investment purchase you should also source the best investment loans structure for you. With any investment your investment loans can make a difference to your return. If you are negatively geared through an investment home loans the cost to you of that investment loans can effectively be reduced.
When you are applying for investment loans, lenders will analyze your credit history, sources of income, your other assets, and even your employment history in order to determine whether you are a good candidate for the loan. Your ability to convince the lender that you can repay the loan is the greatest factor. Having an experience in property management means that you can manage the investment well enough to pay the interest and get profit for yourself.
When considering which investment loans or home loans would suit you best take the following into account:
1. Does the investment loans allow you to split it into a number of investment loan accounts. This is a good feature to have in an investment loans because you are positioning yourself for the future – if you use the investment property at a later date to gear into another investment purchase then you can split the account so that the investment loans portion relating to the new purchase is clearly identified. This allows you, and your accountant, to easily track the costs associated with the new purchase.
2. If you use your home property (with an existing home loan) as security for the investment loans then it is imperative that you do not mix any home loans debts with your investment loans borrowings. The ATO in Australia requires you to apportion any additional repayments to a loan where the borrowings are “mixed”. You want to apply any additional repayments to your home loans before your investment loans. You are paying your home loans off in after tax dollars – whereas you can deduct the interest you are paying on your investment loans against the income form the investment property.
3. Does the investment loans allow you to capitalise interest? It is always a good idea to include a capitalising feature as a part of your investment loan to protect you against any unexpected costs in relation to the property. It also means that instead of subsidising the investment costs and interest shortfall on your investment loan you can capitalise these and make additional repayments to your non-deductible home loan debt.
4. If you have sufficient equity in your home then you may be better to consider a 100% + costs investment loan for the investment acquisition and use any savings you intended for the investment purchase to pay down your home loan debt.