Investment clubs consist of like-minded individuals who pay money into a larger pool that is used to build an investment portfolio. Members typically make regular contributions, and then research and debate investment opportunities before choosing what to do with their money, according to the Securities and Exchange Commission.
Members of investment clubs make friendships, learn from one another, and build returns faster from larger pools of capital, states BetterInvesting. As of 2015, BetterInvesting indicated it had registered 4,000 local clubs with an estimated 30,000 members, including some that have been meeting since the 1960s. Under certain circumstances, investment clubs may need to register with the SEC.