$ Investment Club In Zambia are a Vehicle to Financial Freedom

 

INTRODUCING INVESTMENT CLUBS!

 

“coming together is beginning;

keeping together is progress;

working together is success.”

 

What Is An Investment Club?

People are becoming keener about taking advantage of available opportunities to pool money for investment. Groups are emerging as a good vehicle to collectively achieve investment goals and create discipline to save and invest in ventures that an individual cannot manage. The members do not need to have any prior knowledge. Groups offer the structure and support that many people need to get started investing, and groups make it possible to get into the market without a big initial investment. The fact that a group can accumulate large investment amounts from small individual investments also helps reduce the exposure to risk for individual investors. Groups formed for investment purposes are called investment clubs.

An investment club is an organized group of individuals, usually comprised of friends, coworkers, church members, neighbors or family members, who meet on a regular basis to network, learn and pool their spare cash and invest in the stock market and/or other investment opportunities. The principle of investment clubs is the idea that together we can do more. This is also the same principle in cooperatives, also a form of collective investment scheme, though with more focus on saving and credit, hence, Savings and Credit Cooperative Societies (SACCOS).

The purpose of an investment club is to guarantee financial freedom to the members of the club. However, investment clubs also provide members with social protection, by such services as group insurance, as well as educational platform through field learning trips and guest speakers’ sessions.

Consequently, we are in the group to achieve a level of regular passive income to guarantee us financial freedom, which is, earning passively without working.

When members board the investment club vehicle, they expect to alight at a time “T”, with a networth of “N” USD.  This is the purpose of the club, to help members reach their individual “n”, by reaching the group “
N”.

At a micro level, investment clubs allow members to leverage their small sums and participate in large investments from the pooled assets. At the macro level, investment clubs provide the nation with liquidity for financing high net worth projects through involvement of investment clubs in the financial markets, through equity and debt investments. 

Investment Clubs (ICs) are important vehicles for savings mobilization and wealth creation through boosting long term investments. The Investment Club system is one sure way a country can grow its economy and create strong businesses that will be able to gainfully participate in the regional and international investments and trade.

Investment Clubs provide a system of pooling together capital, lowering risks per individual and availing cheap capital for the SMEs growth or members to borrow from. This system can also provide capital investments in strategic ventures for assured and significant returns. Consequently, Investment Clubs provide opportunities to impact on positive mindset shifts of members from saving to borrow to saving for long term investments. Illustratively, the discipline of saving is reinforced through the structure of monthly saving. It is these mindset shifts that will allow members to identify market, product and investment opportunities for the Clubs’ investment portfolio growth. Further, investing and re-investing the money leads to enjoyment of compound interest. The wealth created can also be inherited by dependants of the investment club members. In addition, the sharing of experiences leads to exposure of opportunities, and knowledge generation in the fields of investing.

When we are part of an investment club, each club member contributes a certain amount of money regularly, mostly each month, which is deposited on a joint investment bank account.  Then, using the account, the members of the club agree on where to invest our savings: purchase of land with intention to sell at a profit, shares, rental property, businesses etc. Robert Kiyosaki writes, “Business and investing is a team sport. The average investor or small-business person loses financially because they do not have a team. Instead of a team, they act as individuals who are trampled by very smart teams.”

In essence, an investment club must have following features:

$       A Club-It must be a group of at least 10 people. The big number provides ideas, and also, leads to more resources being mobilized for high networth projects.

$       Investing-An investment club “invests”. Members bring money, to invest. Not to do business. No to consume. But to invest. This also means that the members decide on investment advisors, together, not as committee, and not sending money to unit fund managers. Investing together leads to learning.

$       Regular meetings-An investment club meets regularly to learn about investments, and to decide on investment vehicles to allocate their portfolio.

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ZANAICA is promoted and hosted by Twende, an on-demand platform and Zambia’s first superapp, that also offers motorcycles (bodabodas) and tricycles (tuktuks), on lease to own, hire purchase model. Twende promotes investment clubs as an initiative to promote savings and investment culture in Zambia. To get free investment club training, do not hesitate to contact us on facebook at https://wa.me/+254103242604, or https://chat.whatsapp.com/HNosGG0OmdWHvXnFHVSLoh or email us at zanaica@twende.store or visit Twende offices at Manda Hill, Plot 271/C.

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