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Investment Clubs

Any good for extra income?

I think i understand how they work in principle but i may be missing something, if 10 people invest and the investment goes up 10% each year for 3 years wouldnt that just mean the same return for each individual as if they invested their own portion on their own? If so whats the point? Im missing it!!

Comments

  • hammersuk
    hammersuk Posts: 85 Forumite
    Is this in the wrong thread?
  • hammersuk
    hammersuk Posts: 85 Forumite
    is this in wrong thread~?
  • danny69
    danny69 Posts: 461 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    makes financial sense. For example, if you buy shares on your own, say £100 of shares in X company, then the charges will be disproportionately higher than if there were ten of you that bought £1000 of shares. It doesnt make financial sense for anyone to invest £100 in a few different companies, so they either have the option to put a bigger sum in one company, or use an investment club. google it!
  • red_devil
    red_devil Posts: 10,793 Forumite
    like to know more is this safe?
    :footie:
  • facetheglue
    facetheglue Posts: 75 Forumite
    red_devil wrote: »
    like to know more is this safe?

    Certainly not safe, unless you find something that will protect your capital.
  • thor
    thor Posts: 5,506 Forumite
    Part of the Furniture 1,000 Posts
    Also there are no fundamental reasons for these investments to go south and stay down. Past history and trends are no indictors to what will happen in the future. Dealing in stockes and shares used to be a respectable form of gambling. Now it is not even respectable!
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