In a world where financial literacy is more vital than ever, the National Association of Investors Corp. (NAIC)—now better known as BetterInvesting in the United States—stands out as a beacon of grassroots investing education. While NAIC isn’t a household name in Australia, its legacy of group learning, disciplined investing, and accessible tools offers a timely blueprint for Aussies navigating the complexities of the 2025 investment landscape.
What is the NAIC, and Why Should Australians Care?
Founded in Detroit in 1951, the NAIC was designed to make stock investing accessible for the everyday person. Its signature approach? Investment clubs—groups of friends, neighbours, or colleagues pooling funds, sharing research, and buying shares together. This collective learning model demystifies the share market and builds confidence, especially for new investors. In 2025, as more Australians seek alternatives to bank savings and property, the NAIC ethos resonates strongly.
- Group Investing: NAIC clubs create an environment for learning and accountability, ideal for those intimidated by solo investing.
- Education Focus: The NAIC’s resources and workshops prioritise understanding over speculation—something sorely needed amid Australia’s recent influx of retail share trading apps.
- Long-Term View: The ‘BetterInvesting’ approach emphasises compounding and patience, offering an antidote to day-trading hype.
Lessons from NAIC: How to Start an Investment Club in Australia
With ASX data showing record numbers of first-time investors in 2024-2025, the timing couldn’t be better for Australians to adopt NAIC’s group investing approach. Here’s how to get started:
- Find Your Crew: Gather a group of 5–15 people with shared goals. This could be family, friends, or colleagues.
- Set the Rules: Decide on club contributions, meeting frequency, and a code of conduct. The NAIC model suggests monthly meetings and regular investments for momentum.
- Use the Tools: While NAIC software is US-centric, Australians can adapt local platforms like Sharesight or SelfWealth for portfolio tracking.
- Education First: Dedicate time each meeting to learning—reviewing ASX-listed company reports, understanding ETFs, or analysing global trends.
- Stay Compliant: Register your club appropriately (as a partnership, trust, or company) and understand your tax obligations. The ATO released updated guidance for investment clubs in March 2025, streamlining tax reporting for group portfolios under $200,000.
2025 Trends: Why NAIC-Style Investing Matters More Than Ever
Australia’s investing landscape is evolving rapidly in 2025. With the RBA maintaining a cautious interest rate policy, share market volatility, and growing interest in ethical investing, education and community are vital. Here’s why NAIC’s approach is so relevant:
- Combatting FOMO: Group investing and education help Aussies avoid falling prey to social media ‘hot tips’ and pump-and-dump schemes, which ASIC has warned against in its April 2025 investor bulletin.
- Diversification: Clubs can pool resources to access a wider range of assets—from blue-chip ASX shares to global ETFs—without overexposing individual members.
- Empowering Newcomers: With Gen Z and Millennials making up nearly 60% of new ASX investors (ASX Investor Study 2025), peer learning is crucial for building confidence and reducing costly mistakes.
- Ethical and Impact Investing: Clubs can focus on ESG criteria or invest in sectors like renewables, aligning financial goals with personal values.
Real-World Example: The Aussie Investment Club Revolution
Take the example of ‘Brisbane Green Shares’, an investment club formed in late 2023 by ten friends passionate about climate action. Inspired by NAIC’s template, they meet monthly, invest $200 each, and focus on ASX-listed companies leading in renewable energy. As of mid-2025, their portfolio has outperformed the ASX200 by 3.2%, and members report greater financial literacy and confidence in their personal finances.
Conclusion: Building Wealth, Building Community
While the NAIC is an American institution, its principles are universal. Australians can draw inspiration from its model to foster smarter, more sustainable investing—whether through formal clubs or informal learning circles. As we navigate 2025’s financial challenges and opportunities, the power of collective knowledge and disciplined, long-term investing is more relevant than ever.
