In this article on investment clubs, we cover the following:
- What an investment club is
- The general guide to setting up an investment club
- What your investment club should invest in
- How to create an investment club on Cowrywise
- Common questions on how investment clubs work on Cowrywise
You can jump right to anyone that interests you.
What Is An Investment Club?
Pooling money as groups isn’t an alien act to Africans. For centuries, we have come together as a people, in our various communities, to gather resources and work towards common goals. With this beautiful act, we have been able to write unique and beautiful stories that have helped changed the lives of many for the better.
Though this has been a good development tool, it has been fraught with various challenges. The challenges include fraud, inconsistent contributions, and risky investments. With the Cowrywise Circles, we have been able to tackle these challenges without taking away the essence of investing together.
An investment club is a group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships and after the members study different investments, the group decides to buy or sell based on a majority vote of the members. Club meetings may be educational and each member may actively participate in investment decisions.- Investopedia
How To Setup An Investment Club
- Build a list of potential members. It’s a club, right? So, you need a team to win.
- Once you have your team set, organize your first meetup. This will help outline investment objectives and gauge the interests of potential members.
- The next step is to put some organization in place. Club leaders have to be appointed.
- With organization set up, do some proper documentation. For example, have people send in confirmation of membership, and agreement with any laid down rules.
- Set-up a collections account that will allow members to contribute seamlessly.
Cowrywise Circles enable seamless collections for free.
What Should You Invest In?
For a start, you should consider low and medium risk options. Also, be intentional about helping members learn more about investing. You should share various but simple investment guides with them, consistently. Using Cowrywise Circles, you can invest in low-risk options that earn up to 15% per annum. Upon maturity, you can roll-over or invest a part in other options you agree on.
How To Create An Investment Club With Cowrywise
- Download the latest Cowrywise app.
- If you don’t have an account, signup for free.
- As a new user, simply tap “Create A New Savings Plan”. On the other hand, if you are an old user, tap “Actions”. Then, “Create A New Savings Plan”
- Tap “Savings Circle” and choose “Collections”
- Pick a befitting name. “Upcoming Billionaires” isn’t a bad one 😉
- Set a target amount
- Set the start and maturity dates
- Invite the club members to join you.
- What if someone joins the circle midway, when will the person’s savings/investments mature? The maturity date is group-based and not individual-based. Hence, maturity is subject to the date set by the club leader.
- What if we don’t meet the target amount before the maturity date? You can choose to either extend the maturity date or withdraw the funds you have built already, even if it is below the target amount.
- What if some members want to save daily and some others weekly/monthly? Circles are flexible enough. They allow members to set up individual preferences.
- What if a member wants to top up randomly? All members can top up their contributions/savings at any time they want to. This can help them cover up for missed contributions.
Download the cowrywise app now to get started
What would you be using the Cowrywise Circles for? Drop a comment to share your ideas with us. If you have any challenges, you can always reach out to us on Twitter, Instagram or via email: firstname.lastname@example.org.