What is a investment club agreement?
An investment club is a group of friends, relatives or colleagues who each pay in regularly and decide together what to buy. The friendly part is easy. The hard part comes later, when members have paid in different amounts at different times and one of them wants to leave. Without a written agreement it's unclear what that member is owed, who can place trades, or how a vote is counted.
This template sets the club's name, start date and structure: a partnership, an LLC with its own operating agreement, or an informal group. It covers founding members and joining, the joining and monthly contributions, a cap on any one member's stake, and the unit system that values each member's share at every meeting. It names the brokerage account and who can trade, sets the vote and quorum for investments and rules out margin, short selling and options unless everyone agrees. Records, tax, withdrawals on notice with an optional fee, a member's death, removal for missed contributions and winding up are all covered. Both signers initial every page.
- Best for
- Friends, families and colleagues investing pooled money
- Signed by
- The treasurer and each member
- Key idea
- Contributions buy units, so each member's share is always clear
- Covers
- Contributions, valuation, voting, brokerage account, meetings, tax, withdrawals, winding up
- Length
- 2 pages, initialled on every page
When to use a investment club agreement
- Friends starting a monthly stock-picking club
- A family club teaching grown-up children to invest
- Colleagues pooling money into index funds and individual shares
- Formalising a club that has run on a spreadsheet for years
- A women's or community investing group
What you fill in
19 blanks, then the name and email of each person who signs: club treasurer, member.
1 The club
- Club name*
- Date the club starts*
- The club is set up as* a general partnership of its members · a limited liability company, under its own operating agreement · an informal group, with the account held by the treasurer for the members
- Treasurer's full name*
- Member's full name*
- Founding members*
2 Money in
- Currency*
- Joining contribution
- Regular contribution per member*
- Contributions are due*
- Most of the club one member may own*
3 Investing
- Brokerage account*
- Who can place trades and move money*
- An investment is approved by* a majority of the votes cast at a meeting, one vote per member · a majority of the votes cast at a meeting, weighted by units held · two-thirds of the votes cast at a meeting, one vote per member
- Quorum for a meeting*
- Meetings*
4 Leaving
- Days' notice to withdraw*
- Withdrawal fee (%)
- Governing law*
5 Who signs
- Club treasurer signature and date, initials on every page · The member who keeps the club's records and account. Signs on the club's behalf as a member.
- Member signature and date, initials on every page · Send one copy to each member, or add every member as a signer in the editor.
What the investment club agreement covers
- Purpose and members
- Contributions and units
- Investing
- Meetings and records
- Withdrawals and leaving
- General
Using the investment club agreement, step by step
1 Set up the club
Enter the club's name, start date and structure, the treasurer, this member and the founding members.
2 Agree the money
Set any joining contribution, the monthly amount and due date, and the most any member may own as a share of the club.
3 Decide how you invest
Name the brokerage account and who can trade, choose the vote needed for an investment, set the quorum and how often you meet.
4 Set the exit rules and send
Choose the notice for withdrawals and any fee, enter the governing law, and send a copy to each member or add everyone as a signer.
Tips before you send it
- Value the club at every meeting, even when nothing changes. It's what makes joining and leaving fair.
- Give a second member view-only access to the brokerage account. It protects the treasurer as much as the club.
- Partnership clubs may need to register or file a tax return where you live. Check before opening an account in the club's name.
- If your club is an LLC, its operating agreement comes first. Use this agreement for the day-to-day rules.
- Keep minutes of every vote. A shared folder in FileIt works well for statements and minutes.
Sign it online in minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Investment club agreement: frequently asked questions
How are members' shares worked out?
Each contribution buys units at the latest unit value: the club's investments and cash, less what it owes, divided by the number of units. A member's share is their units times the unit value.
What happens when a member leaves?
They give the notice you set and are paid the value of their units at the first valuation after it ends, in cash or by transfer of investments if the members agree. An optional fee covers trading costs.
Is this investment advice?
No. The agreement says members don't give each other investment advice and should only invest money they can afford to lose. It sets the rules, not the strategy.
Can every member sign online?
Yes. Send a copy to each member, or add them all as signers in the editor. No one needs a FileIt account, and each copy comes with an audit trail.