What Is An Investment Club?

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.

Points Consider While Taking Investment Loans

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.

Mutual Fund Investment in Private Equity

Mutual Fund InvestmentIncreasing number of mutual funds is advancing into the magnificent world of private-equity investments these days. And, mutual fund investment is one of the most accepted investments that provide clients with specialized management policies for investor portfolios, liquidity and diversification. As private financiers are increasingly reshaping the world of shared finance, more and more mutual fund administrators are getting in on the act.

Equity mutual funds are substitutes to the entity stocks and bonds. Mutual funds are an easy way to partake in the stock market and are said to be the tax-inefficient, expensive and outdated investment vehicles. The key advantage of fund investment in mutual fund companies is that they repeatedly offer diversification. Many of the mutual funds have a need of as little as $100 or less to devote; investors’ risks are quite small and are extended over a large base in the market. Mutual funds have become both striking and precious to small investors.

Mutual funds should be selected based on the investment plan and the group of fund such as debt, equity or hybrid. The right mutual fund scheme can be selected within the group depending on criteria such as scheme size, past performance of the scheme, instability measures and risk adjusted performance of the plan, comparison with peer set and benchmark, expense ratio of the scheme, fund manager performance etc.

Some mutual funds are investing directly in to the private equity companies. Private properties are permitted to make up only a part of a mutual fund’s portfolio. Private Equity investors generally make out a return on their savings due to the type of liquidity event that might take place with private equity firms. Private equity investing involves making reserves in privately held companies. Investors with an eye on longer time horizons can be profited from investments in the form of business loans or acquisitions.

Private equity funds bid investors a chance to depart their money in the hands of a qualified fund manager. Fund manager that runs the private equity fund should pool the offerings of all fund members, invest the money obeying fund strategies and give out the profits amongst the members. One of the most distinguished advantages of private equity funds is that there is a better affinity for both the managers and employees to be rewarded with what they ought to have. Private Equity fund investment approach is somewhat beneficial for both the investors involved as well as the dealings attained by the private equity firms. Several strategies are associated with the private equity funds and some of them are the growth capital, buyouts and the venture capital.

Secura is a private equity firm and an investment management company. It is a SEBI-registered real estate venture capital fund, and has been certified as India’s first Shariah compliant real estate Venture Capital Fund. It supports Islamic finance, which works in compliance with the Shariah Law. Islamic banking or Sharia complaint finance principle is based on risk-sharing, but not with lending of money at an interest. Secura does JV’s with apparent industrialist to build up commercial, retail or residential properties and leasing of spaces, particularly in northern Kerala. TASIS, a Sharia Certification firm, does the Shariah inspection of these spaces every three months, covering the conjecture and fund payouts.

The financial services industry is an ever-changing environment. And the year 2013 mutual fund investment in india offers a variety of openings to grow for investors. Invest in Secura Investment Scheme and cut down your transaction costs. Secura Investment Managers will help you in selling your Mutual Funds at the current market value

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