Are there any services like this?

Question

I got this idea from services that offer group buying of goods. Does anyone or is it even legal for a company to take clients money and put it into a pool and invest as a single entity, then give returns back to the client, obviously keeping some of the profit. As im writing this its starts to sound a lot like a bank but does anyone do this where one can invest as little as they like.

Answer 1

Isn't that just a hedge fund?

Answer 2

Yes, you have a good idea there, and several legal ways to go about it. You can invest others' money for returns and keep some, without registering with the SEC depending on assets under management, by operating a hedge fund, or an investment limited partnership.  

You can also register and operate a reporting investment fund. This could be a mutual fund, where you must adhere to whatever style or investment objective you advertise. There are more reporting requirements for such a fund, and you need to be licensed.

Thirdly, you could register and operate a broker/dealer, and make profits based on managing others' assets under a broad charter. Reporting and compliance for this structure is demanding, and you need more licenses.

It's a great business to be in, whatever role you chose.

Answer 3

LOL.  That is what a mutual fund does.

Also an Investment Club does about the same thing. Google investment club and you will find more info.

Answer 4

Sounds like a mutual fund.  Mutual funds gather monies from thousands of people, then take all the money and buy stocks and bonds in the stock market.   Then then split profits (or loss) proportionate to the shar of monies put in.    

www.sevenpillarsinc.com

Answer 5

obviously pal go ahead invest as small as u can , but do consider the risk factors involved better investin in bigger firms than in pooling money , atleast u can drag the firm to court but cant get in to a brawl witha frnd or known