Membership & Fees of Investment Clubs in Zambia
€
Number of Members
We
will agree on the size of the investment club. Studies show that a good size
for an investment club is approximately 12 to 18 members. When I limit the size
of the club to this many members I am still small enough to hold meetings in
member’s homes.
€
Membership List
I will
then make a list of member interests and expertise. This is because as I begin
hunting for companies in which to invest, I will want to choose industries to
study. As Peter Lynch points out, ‘it is
a great strategy to buy what you know.’ (Actually, it is probably best
restated as ‘research what you know.’)
If I am in the chemical business, I might volunteer to look into companies in
that industry, choosing a few for a close look. If a member is an avid golfer,
she might look into golf-related companies. It is a good idea to make a list of
the industries with which my club members are familiar. Even if someone's only
hobby is hitting the malls every weekend, that is a great boon - he will be
familiar with many retailers. A listing of current members, including phone
numbers and addresses should be done.
€
Membership Duties
Each member of an
investment club is expected to participate by:
£
Making
monthly contribution
£
Researching
and following the progress of a particular stock or family of stocks that the
Club has bought or is considering for purchase.
£
Researching
securities and presenting the data to the rest of the group.
£
Making
ongoing buy and sell decisions.
£
Tracking
and reporting overall portfolio performance.
£
Accurate
management and reporting of personal taxes.
€
Membership Fees
There
should be clearly indicated the amount of money that each member should pay
when they become members of the club; the monthly subscription for purchasing
shares, and the monthly payment for dues for maintaining the club and club
activities. Members should come to a mutual agreement upon how much money they
are each going to contribute each month.
This
need not be set as high as possible, after all, this is a learning activity, and
the members can always increase the amount at a later date. Many clubs allow
members to contribute more than the monthly minimum level if they so desire.
Members can make changes to the minimum amount policy at a later date. Many
clubs start out with small contributions of anywhere from $25 to $50 dollars.
This money is used for reimbursing club registration & other legal fees;
contribution into the investment fund; buying educational materials; and
purchasing snacks during the meetings.
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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