What are the Different Types of Investment Club Software?

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  • Written By: N. Kalu
  • Edited By: Allegra J. Lingo
  • Last Modified Date: 02 September 2019
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There are many different types of investment club software offered by private companies that support creators of investment clubs around the world. Such software is used to manage all aspects of a club organization's accounting, including income, expenditure transactions, and financial and performance reporting. Club accounting software can also help manage tax returns filed for the club's individual investors.

Accounting software can accommodate groups of all sizes and investment purposes. Larger clubs will find that they need sophisticated investment club software to manage the records and activities of all members. These tasks can be quite boring, and are prone to human error. Software eliminates this problem by making it easier for the members who are responsible for the organization's administrative upkeep to perform their assignments more efficiently.

Smaller and less experienced clubs can also benefit from investment club software. Since the organizers of a small club are usually beginning investors, this type of software can help them learn the basics of financial forecasting, evaluating trends, and creating graphs to visualize those trends. The program can even provide profiles of each member, thus clearly presenting the statistics on each individual investor and his or her debits and profits.


Many types of software catering to investment clubs can be found online through a login page, as opposed to a downloadable program. Keeping the software in the cloud and accessible to anyone with the appropriate access credentials allows members of the club to control their account from anywhere in the world. Transactions made using the software online are very secure and trustworthy.

An important type of investment club software is one that provides clear and detailed performance reporting. Metrics that take stock of the investment club's condition fall into one of two categories: money weighted return metrics and time weighted return metrics. In order to report on the state of the club, it is absolutely critical that the software periodically measures a wide variety of performance metrics in both categories. Common metrics include asset allocation, profit and loss, dividend yield, sector weighting, comparative market indices, and internal rate of return.

When used properly, this type of software can accurately track the club's pool assets and investment partnerships. While club managers usually utilize investment club software for accounting and reporting purposes, it can also serve as a sort of customer relationship management tool. Managers are able to interact with members and stay abreast of membership interests.


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