Responsibilities of Investment Club Members     

Have you been invited to join an investment club?  This is wonderful news!  Not only are investment clubs a fun and exciting way to learn about the stock markets and investing in general, but you stand to, while pooling your funds with the other members, gain an appreciable amount of money.  The responsibilities of investment club members are varied, depending upon the individual group, but we'll give you a general overview of what can be expected.  Don't worry, it shouldn't be bad!

Read and Sign the Charter

The charter or operating agreement is a binding contract between the officers and the members of the investment club. The responsibilities of everyone in the club - members, officers, and the president and so on - are usually outlined in the bylaws of the group, which also present a reasonable limit as to how much work you have to do in order to remain a member of the investment club.

Research Investment Opportunities

Whether you have to read magazines or go out to visit a local company, researching investment opportunities is a key part of the responsibilities of an investment club member. You should look in to market trends, company strengths and weaknesses, and any other variable that you think could affect the stock’s performance. With this, you present ideas to the club regarding which stocks or bonds into which money should be put... Good research may mean the difference between gaining and losing cold, hard cash!

Contribute Funds

Money, money, money...it makes the world go 'round -- and this is most especially the case in an investment club, considering that’s what they are all about. Members are required to contribute funds on a regular basis. Whether this is weekly, monthly, bi-weekly or bi-monthly depends upon the individual charter involved. The amounts, too, vary depending upon how many people are in the group, how much each person earns, and how much each can spare in case of sudden stock fluctuations. $25, $50 and $100 at a time, per member, are amounts not unheard of. Before you even join an investment club, you are responsible for determining how much is too much for you. Never invest more than you can afford to lose!

Be Active

This is probably the core of any group: activity from its members! This is especially true in an investment club, because if not all of the members of the club are participating in the group activities (the meetings, the research, the contributions), then the club is listed as a Security and must register with the Securities and Exchange Commission (the SEC), and be governed by its laws.

Your group needs you...so be a part of the fun!