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The stock market has been all over the place recently, and it's making people nervous. But when shares are cheaper, investors get more for their money, so when share prices rise again, they make a bigger profit. In fact, if you've been thinking of investing but don't really know where to start, this summer could be rather a good time - despite the market jitters. The easiest and most sensible way to buy shares, as a new investor, is to pay into a fund. This means someone else makes the decisions about which companies offer the best prospects for making money, and buys shares in them on your behalf.
The fund manager is paid enormous sums of money to spot shares which will make a profit. Often they seek companies which are undervalued. Fidelity's Fundsnetwork, a "supermarket" for investment funds, offers
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recommendations for good funds. You can invest from £20 a month, per fund, proving you don't have to be super-rich to buy shares.
Be aware that many fund managers don't actually perform any better than tracker funds, which mimic the performance of the FTSE 100 or All Share index. Some trackers will also accept a mere £20 a month. A tracker is a good option if you think you might want to "buy and forget" your investment, rather than check its value obsessively. You can find out more about trackers and how to invest at Motley Fool.
If all this befuddles you, there are plenty of independent financial advisers who'll help you start out in investment (but you'll have to pay a fee or allow them to take commission). You can find one at Unbiased or The Institute of Financial Planning. 
FIRST POSTED MAY 25, 2006
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