Investment pooling clubs

[shaunQ]

I saw a Simpsons episode where Marge joined an investment club with her friends. Has anyone heard of people, a club, friends, or a group, pooling a small amount of money (each) into an investment strategy? Is that something people would consider?

Would a trust or such NEED to be setup to hold the assets of the individuals? or would that be optional - although obviously more risky for the people, could a single entity hold it with a legal document on the side attributing ownership be sufficient legally?

The ASX has a minimum purchase of $500. Can I be given $50 from 10 people and buy this allotment on their behalf. Am I then a broker? - and required to be licensed?

 

[GumbyLearner]

I saw a Simpsons episode where Marge joined an investment club with her friends. Has anyone heard of people, a club, friends, or a group, pooling a small amount of money (each) into an investment strategy? Is that something people would consider?

Would a trust or such NEED to be setup to hold the assets of the individuals? or would that be optional - although obviously more risky for the people, could a single entity hold it with a legal document on the side attributing ownership be sufficient legally?

The ASX has a minimum purchase of $500. Can I be given $50 from 10 people and buy this allotment on their behalf. Am I then a broker? - and required to be licensed?

The ASX dont mind it.

http://www.asx.com.au/resources/newsletters/investor_update/20040713_InvestingFunProfit_IE3.htm

 

[Panacea]

Has anyone heard of people, a club, friends, or a group, pooling a small amount of money (each) into an investment strategy?

There were a few stories on the 'mainstream' current affairs shows about these clubs a couple of years back. They seemed to be popular with stay-at-home mums and Amway types (no offense intended). The idea, as you suggested, was that people with similar investment goals and risk tolerance would pool their resources.

They seemed to be social gatherings as much as anything else, with members meeting once a week for coffee, or a monthly BBQ, and to chat about the latest profit forecast for XYZ. Might be fun in a bull market, but it would be interesting to be a fly on the wall at recent meetings - lots of ruined friendships i'd imagine.

I'm not sure about the legal structure of these groups, but they seemed quite informal.

 

[Stormin_Norman]

The ASX has a minimum purchase of $500. Can I be given $50 from 10 people and buy this allotment on their behalf. Am I then a broker? - and required to be licensed?

while a $500 initial amount might make this cost prohibitive, set up a company and issues shares ($400 fee - form here: application form).

the company can then buy the securities.

you can also calculate the value of the shares at any time allowing extra shares to be purchased, or new people to buy in.

 

[GumbyLearner]

while a $500 initial amount might make this cost prohibitive, set up a company and issues shares ($400 fee - form here: application form).

the company can then buy the securities.

you can also calculate the value of the shares at any time allowing extra shares to be purchased, or new people to buy in.

Im sure there are plenty of these in the Channel Islands. I wonder if Operation Wickenby has accounted for this?