Why Nobody Cares About Investment Clubs.
4. Only a few people are aware that it is not a space for experts but is one that seeks to educate novice investors. Investment clubs can be found in most municipalities and regions, and have been around for decades as a way for people with limited funds to contribute and partake in larger investments as well as to get first-hand experience and education.
5. Investment Clubs are not get-rich-quick schemes. They are founded on the idea of slow and steady growth, an idea that cannot really be sold sensationally. It does not cause the same ripple in popular culture. Therefore, it is possible that sections of society can remain oblivious to it.
6. Unaware of the regulation and protection provided by the Capital Markets Authority. Inexperienced investors tend to steer clear from sections of the economy that are unfamiliar, and the capital market certainly remains an obscure concept to the public. It does not help that these prospective investors are not privy to the fact that these markets are regulated and protected by the Capital Market Authority. Consequently, they never build up the confidence to invest in that market, eventually losing any interest in Investment Clubs. The Capital Markets Authority (CMA) is an autonomous body, established in 1996 under the Capital Markets Authority Act (Cap 84), to promote, develop and regulate the capital markets industry.
7. Belief that it takes too much work to get an Investment Club started. A number of people are convinced that it takes too much work to put an investment club together and so, they stay away from Investment Clubs altogether. The idea of trying to mobilize people you trust, who agree on a common goal, have the money to contribute and are willing to participate in the Club, might seem too tedious for some. All this before the Club is up and running, and one has to commit their time and money to it.
All of these reasons only prove one thing, and it is not that Investment Clubs are ineffective organizations. They just point to how much more education we need about Investment Clubs and the financial industry as a whole.