Thursday, October 01, 2009

Investment Clubs

Well since Mr Madoff (Bernie Madoff) created the greatest pyramid scheme of our time, I have been wondering if money managers are over rated. To that end I started looking at other options. That is other options to money managers. Well, there are mutual funds, which are much more regulated. However, mutual funds especially actively managed ones can have fairly significant fees. Investigating further, I found quite an intersting alternative. The great thing about this alternative is that it has been demonstrated to give as good a return on investment as some of the best managed funds in the world, with a much lower cost and fee structure. The alternative is an investment club.

An investment club is a group of people who form a corporation, LLC, or joint venture; and pool there collective funds together for investing. The advantage is that a small group of modest investors can pool enough funds together to get very low transaction costs, and have a very low management fee.

No comments:

Post a Comment