Anchoring your Investment Club for longevity

For Investment Clubs, there has never been a better time to re-evaluate, realign and create practical strategies for the success of your group’s finances.

While the ability of your members to keep up with theirregular savings might have been affected in one way or another, it is possible to both salvage and make the most of your current situation. How an Investment Club decides to do this is core to their survival now and in the future. As a leader, there are a number of ways you can ensure a smooth navigation for the members of your Club.

Understand and Monitor the evolution of the pandemic.

The ebb and flow of the effects of the pandemic must be understood and these understandings applied to the decision making of your Savings Group. The temptation of quick fixes notwithstanding, it is possible to use trends, economic projections, market insights and consumer behavior as guides on when where and how much of your group resources should be invested.

Regulatory bodies, financial institutions and industry associations have shared information that is easy to access and utilize. dfcu Bank, for instance has a team dedicated to offer expert and research-backed advisory services to Investment Clubs which bank with us. Reach out to your banker to understand and harness your options.

Reshape your Investment Portfolio.

With a change in socioeconomic factors both locally and globally, there is a need to revisit and if necessary, revise your Club’s Investment portfolio. The demand for certain goods and services has grown while that of others has declined – and your Club’s ability to identify the areas which will give the greatest returns for your revenue is vital for growth. Consider options like investing in Collective Investment Schemes or real estate which is a safe and passive source of income and value. Again, consult your financial partner for guidance in making informed decisions.

Be receptive to Financial Support.

On your Club’s journey to sound and lasting investments, there might arise a need for extra financing; do not be afraid to engage your banker for this support. Several institutions are crafting customized plans to enable thousands of their clients stay afloat or invest further even with the uncertainty of the future. These plans consider both immediate and future circumstances that could affect your Group’s financial stance and ability to service a loan facility. For your Club to grow, you should be open to taking a certain amount of risk, backed by expert-advise on both pros and cons of your investment prospects.

In conclusion, revising your strategies, taking advantage of available information and making informed decisions will go a long way in ensuring financial growth and keeping your Investment Club rooted in its purpose.

Pamela Nakityo, Senior Manager Investment Clubs and SACCOs, dfcu Bank

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