Can anyone please advice me on WHAT an investment club is all about and HOW it is registered.

I currently run one here in the UK. I don't know the rules for Naija sha, but if you want to learn more about starting an investment club, visit here:

http://www.proshareclubs.co.uk/

Things to know.
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.
Investment Clubs are run under the following simple rules, and can be modified in many ways: an Investment Club is a group of 12-15 people, usually organized as a legal partnership. The Club has officers, and each member is expected to participate by:
1. attending each monthly meeting;
2. making a minimum monthly contribution, usually N2,000 or so (but you could contribute more);
3. Researching and following the progress of a particular stock or family of stocks that the Club has bought or is considering for purchase.
The Club's portfolio is determined by the members; a designated member deals with the Club's broker to execute buy and sell orders; the value of each member's share is determined by his/her capital contributions to the Club and the total value of the Club's portfolio. There is a clear Club accounting guidelines and software that will help with the bookkeeping, and make it possible to keep track of partners who invest different amounts each month. An Investment Club depends on the involvement of all its members; remember, there are no silent partners in successful Clubs.
At the minimum monthly contribution level of N3, 000, almost anyone can participate in an Investment Club. The only requirements are a willingness to work and participate; and the ability to get along with the other members of the Club. As a legal partnership, you should approach the idea of a Club as going into business with fifteen people -- all fifteen have to be people you trust and people who will trust you in return.
It may also interest you to know that an Investment clubs usually do not have to register, or register the offer and sale of their own membership interests, with the SEC. But since each investment club is unique, each club should decide if it needs to register and comply with securities laws.
Since the Securities Act requires the registration of the offer and sale of most securities, the investment club must first decide if its membership interests are "securities." Generally, a membership interest is a security if it is an "investment contract."
Generally, a membership interest is an investment contract if members invest and expect to make a profit from the entrepreneurial and managerial efforts of others.
If every member in an investment club actively participates in deciding what investments to make, the membership interests in the club would probably not be considered securities. If the club has any passive members, it may be issuing securities.
Sometimes offers and sales of securities do not have to be registered because they are exempt under the law. For example, a non-public offering is exempt.
An investment club must register with the SEC as an investment company under the if all of the following three conditions apply:
1. the club invests in securities,

2. The club issues membership interests that are securities

3. The club is not able to rely on an exclusion from the definition of Investment Company.
For example, a "private investment company" may not need to register with the SEC. To qualify, an investment club
• must not make, nor propose to make, a public offering of its securities, and

• must not have more than 100 members
An announcement that a club is looking for new members might be considered a public offering, but this is determined on a case-by-case basis. An attorney with experience in securities law can help the club determine if its membership interests are securities, and if the club is making a public offering of those securities.
If the adviser is compensated for providing the advice regarding the club's investments, the adviser may need to register according to the Investment Advisers Act. Also, if one person selects investments for the club, that person may have to register as an investment adviser.
In general, a person who has N25 million or more in assets under management is required to register with the SEC under the Investment Advisers Act.
A person managing less than N25 million may be required to register under the securities laws of the state or states in which the adviser transacts business.
Both the Investment Advisers Act and many state laws do not require registration for advisers with a small number of clients
money back') of most Clubs will often be less than the capital contributions of its members during the first year or two. That is to say, investing in the stock market is a long-term proposition, and you may only see your contribution increase in value after the first year or so of a Club's operation.
You should expect to make a long-term commitment, and the partners usually decide to include a clause that addresses the early withdrawal of funds (other than in the case of unusual circumstances).
Most Club members also eventually begin their own individual portfolios, armed with the knowledge and skills they gain from belonging to the Club.
Warning:
Before you join an investment club, you should definitely take a look at your finances. If you have any free capital that is not used for bills, payments, and so on, you might consider investing. However, if you are in severe debt, you probably shouldn’t join an investment club, as the odds are you will lose money before you begin to gain any. Our best advice: do not invest beyond your means!
Some Mutual benefits In Investment Club.
Personal risk is low. Even though the money that your club has to invest can be quite large, your own personal contribution can be very minimal. This way you’re not risking a lot of your money while you learn how the stock market works. You can still make some great investments but your loss factor will be manageable for you. Keep in mind that when your club makes a profit, no matter how small, the amount must be distributed throughout the investment club membership.
More room for profit. Recent studies of investment clubs show that when a group of people make investment decisions after a series of discussions and debates, the potential for profit is greater than when individuals make their own decisions about where and how to invest their money.
Similar interests. Members of an investment club enjoy getting together on a regular basis to discuss the investment market and to learn more about a subject that greatly interests them.
Invest regularly. Investment clubs have the ability to invest in the stock market even when the market is dropping or is slow. Because the money in spread out among a group of members the room for huge personal loss doesn’t exist.
Reinvest. Since most members are part of an investment club for fun, and to learn more about the stock market, there will be more room for reinvesting the gains and dividends that are earned from successful investments. When you invest on your own you won’t be as willing to part with earned investment money and reinvest everything that you gain.
Spread out investments. When you’re investing with a group of people you can diversify your investments and not limit yourself to just one or two market choices.
For who?
Starting out. If you’ve always wanted to invest in the stock market but been reluctant to lose large sums of money because you don’t know what you’re going to do, then an investment club is great for you since you can be part of a large investment team.
Low investments. If you only have a small amount of money to invest each month, such as N3000 to N5,000, then an investment club is perfect for you. You can invest small amounts of money into the larger combined total of the entire club.
Investing education. If you’ve always wanted to learn more about investing in the stock market, but you keep putting your interest aside, an investment club is a great way to inspire you to attend meetings and learn more about how to invest.
Socializing. Getting together with a group of people with similar interests is an enjoyable way to learn about something that you’ve always wanted to be knowledgeable about.
Inspiration. When you can safely work with people with similar interests you’ll be inspired to take chances and learn as much as you can about investing.
Our goals are:
• To learn about investing in stocks
• To make a return on investments.
Objectives:
i. To make profit through stock marketing.
ii. To ensures safety of capital by divesting into money marketing.
iii. To sustain the club through investment in real Estate and involve in other Business ventures.
iv. Our investment horizon are in Short, Medium or long term.

Our Business Models
Esusu Strategic Investment Plan. (AESI)
This type of business model requires less paperwork and knowledge about taxes and other financial issues. Like Most investment clubs we will choose a general partnership as our choice of a business entity. A general partnership has nominal paperwork and costs associated with it because the taxes are passed to each partner’s tax returns. This type of business model will motivate members to accomplish what is needed to do to run an investment club with the least amount of tax influence. Investors (known as Partners) will contribute a specified amount each for start up investment. In addition to this,”Adako and “Esusu” strategies will be built in to improve and expand the investment of the club:
1. “Esusu” strategy: Is also a form of contribution that is made by a group of people. In this case a sum contributed at a particular time will be given to one person for use while others wait until the next contributions. This look like an interest free loan to members of the group.


Need to Join one?

Send us an email today. globalvilakoncept@yahoo.com

Y’s Investment Club

December 20, 2007.

Dear Friends,
Notice of Meeting.
Please be informed that the above named Club meeting is as schedule below:
Date: Saturday 29 December 2007.
Time: 11.00A.M
Venue: Youth Centre Auditorium - Yaba Methodist Cathedral, 321, Herbert Macaulay Street, Sabo Yaba.
Please be reminded also that you have to come with your N1,000 naira registration fee as it was decided at our last meeting.
Enclose herewith is a copy of our Minute/ report of last meeting. Please print along to the meeting.
Yours sincerely
Eno Eyo Sunday - 08023233258






Y’s Investment Club

Agenda
 Opening Prayer. - Eniola
 Welcome Address - President
 Business Time 1. Membership declaration N1, 000 applications.
2. Review of Membership Agreement
3. Review of MOU & Bye Law
 Menu Time
 A.O.B
 Closing Prayer. - Giovanni Durojaiye
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