It’s lime a mutual funds but if you are going to do this with your friends, better not to because conflicts might happen especially if someones wants to get his money back instantly.
Collecting of funds and investing it is already happening with the stock market and it is being handle by the professionals so you can have more confidence with your funds. It may look higher since the capital is big, but with the trust issues, I think I will not go for this.
It's true that what makes this strategy difficult is because it's difficult for us to trust other people. And sometimes there are differences in the interests of each person which can lead to conflict or something like that. So it's better for us to stay focused on investing for ourselves and with our own capital. We can start with a small investment and gradually move on to a larger investment. Don't rush in pursuing success. It's better for us to enjoy every process and slowly we increase the assets we have.