Steps In Establishing An Investment Club

[generalbill]

I And A Group Of Friends Are About Starting An Investment Club
1. Is There Any Registration Formalities To Be Concluded With Corporate Affairs Commission, Securities Exchange Commission Etc

2. What Is The Unit Valuation And How Can We Do It

3. What Is Suposed To Be Our Contribution And Earnings Ratio

4.what Is The Minimum And Maximum Number Of Poeople Needed By The Club

[StudentInvestor]

I am not sure but i think that there will be need for registration because it is like having a unit trust company or mutual fund. There are a lot of variables to consider like you pointed out including the investment objectives and risk tolerance which will drive the type of shares to invest in.

In the alternative, it may be better to structure the club more like a private equity company where the members pledge on how much they will invest over a given period of time. whoever manages the club will then make a capital call on the members whenever an investment opportunity arises.

[fadun]

I am not sure but i think that there will be need for registration because it is like having a unit trust company or mutual fund. There are a lot of variables to consider like you pointed out including the investment objectives and risk tolerance which will drive the type of shares to invest in.

In the alternative, it may be better to structure the club more like a private equity company where the members pledge on how much they will invest over a given period of time. whoever manages the club will then make a capital call on the members whenever an investment opportunity arises.

Dear Student investor. How does one goes about registration of the investment club? However, If we decided to make it private equity company, how does one go about it? Kindly enlighten me. Thank you.

[ekpotek]

Originally Posted by fadun

Dear Student investor. How does one goes about registration of the investment club? However, If we decided to make it private equity company, how does one go about it? Kindly enlighten me. Thank you.

It is not really difficult to start an investment club. My club, ABK Golden Profile Nig Ltd based in Abeokuta was started in November 2005. We so far midwifed 2 more clubs which are doing well. All clubs registered with CAC as Limited liability company. To make it a private equity company. You'll need to decide among yourself who will be the directors of the company. Decide on a name and get in incorporated with CAC with a minimum share capital of 1 million. In our club contributes N8200 monthly to be invested in the stock market. We will do this for 5 years to raise enough capital and then diversify into properties and other markets. Ultimately the club (company) in near future have its members owing equally equity share in the company. Unfortunately we are not accepting new members. But we can offer assistance to groups in Abeokuta wishing to form their own clubs

[bodrea]

Originally Posted by ekpotek

It is not really difficult to start an investment club. My club, ABK Golden Profile Nig Ltd based in Abeokuta was started in November 2005. We so far midwifed 2 more clubs which are doing well. All clubs registered with CAC as Limited liability company. To make it a private equity company. You'll need to decide among yourself who will be the directors of the company. Decide on a name and get in incorporated with CAC with a minimum share capital of 1 million. In our club contributes N8200 monthly to be invested in the stock market. We will do this for 5 years to raise enough capital and then diversify into properties and other markets. Ultimately the club (company) in near future have its members owing equally equity share in the company. Unfortunately we are not accepting new members. But we can offer assistance to groups in Abeokuta wishing to form their own clubs

Can you please assist us with the processes and documentation require to set up an Investment club. We are really serious in setting up one and a professional assitance from person like you will be appreciated. thank you.