Investment Clubs Overview

Last updated: January 10, 2026 · Investment Clubs · 7 min read

Investment clubs pool members' money to invest in stocks, ETFs, and other assets. This guide explains how investment clubs work on Zeturi and what features are available.

What Is an Investment Club?

An investment club is a group of people who combine their money to invest in financial markets. Members contribute regularly, the club buys investments, and everyone shares in the profits (or losses) based on their ownership.

Key Characteristics

• Unit-Based Ownership – Like shares in a mutual fund
• Pooled Investments – Buy stocks, ETFs, bonds together
• Shared Returns – Profits and losses distributed proportionally
• Long-Term Growth – Focus on building wealth over time
• Collective Decisions – Members vote on investments

How Investment Clubs Work on Zeturi

1. Unit-Based Ownership

Your share of the club is tracked in units:

• Each member owns a certain number of units
• Unit price changes based on portfolio performance
• Your value = units owned × current unit price
• Like owning shares in a company

2. NAV (Net Asset Value)

The club's total value:

NAV = Total Portfolio Value - Liabilities Unit Price = NAV ÷ Total Units Example: Portfolio: R100 000 Total Units: 10 000 Unit Price: R10.00

3. Contributions

When you contribute money:

• System calculates units based on current price
• Units = Contribution ÷ Unit Price
• Units added to your account automatically
• Your ownership percentage increases

4. Portfolio Management

Club invests in various assets:

• JSE-listed stocks (Shoprite, MTN, etc.)
• ETFs (Satrix Top 40, etc.)
• Bonds (government or corporate)
• Cash reserves in bank/broker accounts

Key Features

Portfolio Tracking

• View all holdings with current values
• Asset allocation pie chart
• Cost basis vs current value
• Unrealized gains/losses
• Total return percentage

Asset Valuation

• Admin updates market prices manually
• NAV recalculates automatically based on updated prices
• Unit price adjusts based on total portfolio value
• Recommended: Monthly valuations to keep unit prices accurate

Dividend Tracking

• Record dividends received from holdings
• Allocate to members based on units
• Option to reinvest or distribute
• Increases NAV when retained

Withdrawals (Redemptions)

• Members can request to redeem units
• Value = Units × Current Unit Price
• Admin approval required
• Notice period may apply (e.g., 30 days)

Investment Process

Making Investment Decisions

1. Research
   Members research potential investments
2. Propose
   Submit investment proposal to group
3. Discuss
   Club discusses pros and cons
4. Vote
   Members vote on whether to invest
5. Execute
   Admin places order with broker
6. Record
   Admin records purchase in Zeturi

Recording Purchases

When club buys an asset:

• Enter ticker symbol (e.g., SHP for Shoprite)
• Quantity purchased
• Price per share
• Brokerage fees
• Purchase date

Member Roles

Member

• Make contributions
• View portfolio and units
• Participate in investment discussions
• Vote on proposals (if enabled)
• Request withdrawals

Treasurer

• Record contributions
• Update asset valuations
• Record purchases and sales
• Process withdrawal requests
• Generate reports

Admin

• All treasurer permissions
• Approve withdrawals
• Configure club settings
• Manage members
• Set investment strategy

Performance Tracking

Individual Performance

Track your investment:

• Total invested (cost basis)
• Current value
• Unrealized gain/loss
• Return percentage
• Units owned over time

Club Performance

Overall metrics:

• Total portfolio value
• Total return since inception
• Annualized return
• Asset allocation breakdown
• Individual asset performance

Getting Started

As a New Member

1. Accept Invitation
   Click link in invitation email
2. Complete Profile
   Add your personal details
3. Make First Contribution
   Transfer initial investment amount
4. Receive Units
   Units issued at current unit price
5. Join Discussions
   Participate in investment decisions

As a Club Admin

1. Set Initial Unit Price
   Choose starting price (e.g., R10.00)
2. Configure Settings
   Withdrawal notice, exit fees, voting rules
3. Invite Members
   Send invitations via email
4. Collect Contributions
   Record as members contribute
5. Start Investing
   Make first investments and record them

Best Practices

• Diversify holdings – Don't put all money in one stock
• Regular valuations – Update prices monthly
• Keep cash buffer – 10-20% for withdrawals and opportunities
• Document decisions – Record why investments were made
• Long-term focus – Don't panic over short-term drops
• Track fees – Brokerage costs add up over time
• Review quarterly – Assess performance and rebalance

Common Questions

How much should I contribute?

Start with what you can afford monthly. Many clubs set a minimum (e.g., R500/month). Remember, investing is long-term—consistency matters more than amount.

What if the unit price drops?

Short-term drops are normal. If you keep contributing, you buy more units at lower prices (dollar-cost averaging). Focus on long-term growth.

Can I withdraw anytime?

Most clubs require advance notice (e.g., 30 days) to raise cash by selling assets. Check your club's withdrawal policy.

Who decides what to invest in?

Depends on club rules. Some have designated portfolio managers, others vote on all decisions. Discuss and agree on decision-making process upfront.