I personally quite like the following idea, as an initial proposal (heed kevin - I've written that word!), if Rich's poll works out as he has suggested:
Members invest 50/50 of their money into each of two funds, so everyone invests on the same terms. I think this is important as it ensures everyone has an interest in both funds and everything the club does. Plus it makes it easy to address past investments by club members to attribute holdings going forward.
Fund 1:
Have four shares from different sectors plus SHRE. Keep as long-term holds for income and don't really care about the current price unless it seriously bombs or sell off if the price grows above 30% of purchase price, take our profit and find a replacement etc... Otherwise collect the dividends, invest in any of the four further when funds permit, according to a four choice vote, in blocks of £600 and no more.
Fund 2:
Invest money any way we like, in much more feisty shares that might bring us a decent return rather than a few percent. Fix a stop:loss against each share a set amount and a tracker when it hits a threshold profit point we are after. We look to invest either when we have £600 in the kitty for a purchase or when one of our shares in this portfolio is sold and there is a block of at least £600 then available.
In practice:
We choose four shares from our current portfolio to hold as long-term investments, which are the most interesting to us as a club. I would personally suggest holding GSK, United Utilities, ITV and Aviva as they all offer interest to us. They ay not be performing greater on paper at the moment but GSK and UU. have both been OK in the past for us, Aviva seems steady so far and provides a good divi and ITV still has interesting potential, which for the amount invested seems worth pursuing. Sell the rest. Add the money from the sales to the current cash kitty at hand and give half each as funding for the two funds to progress. Start voting for which of the four in fund 1 to purchase more shares in. Start looking for three choices to vote for in fund 2. We should then have kickstarted the club again
- Forums
- imutual
- Investment Club
- A different kind of proposal....