Dive in now and take a share of the profits

Buying shares doesn't have to be a huge gamble - especially if you take the plunge and do it NOW.

Successful investors buy when prices are low and sell when they're high. And as share prices have fallen dramatically in recent weeks, playing the stockmarket now should be a relatively safe bet.

Buying shares has also never been easier - or cheaper. You can arrange a deal over the phone, through the post, or by popping into your local bank or building society - for as little as pounds 2.50.

Millions of people have already bought shares in the Government's mass sell-off of publicly-owned companies such as British Gas.

And next June, 10 million instant shareholders will be born when the Halifax becomes a public company.

But investing in shares does carry risks. And new investors must be aware of these before they step on the stockmarket rollercoaster.

Those who invested in the first BT issue in the Eighties have turned in a tidy profit. But those who chose BT3 in 1993 have seen the value of their shares drop far below the price at which they bought them.

Still, even when prices drop you should keep hold of your shares, say investment experts.

Returns from shares generally outstrip the interest offered by building society savings.

"There's no doubt that equities as a whole outperform any fixed- interest investment," says Kean Seager, managing director of Whitechurch Securities, the Bristol-based independent financial advisers.

In the last 10 years, for instance, shares in the FOOTSIE index of the top 100 shares in the country have grown by around 250 per cent, while the same cash invested in a building society would have realised just 117 per cent.

"But people shouldn't just sit on just one share," warns Kean. "A balanced portfolio is advisable to cope with the highs and lows experienced by individual stocks."

Most banks and building societies now offer cut-price share dealing. However, they won't offer advice on what to invest in.

Sensible investors will choose reliable shares in well-known names. And clever ones will put theirs in a personal equity plan to take advantage of tax-free gains. You can invest up to pounds 9,000 each year in shares in a PEP. But it's unwise to keep all your spare cash in shares. Your savings should be balanced with safer investments, such as building society deposit accounts, so if the market falls your savings won't be hit too hard.

If you have questions about owning shares, call ProShare, an organisation promoting share ownership, on 0171 394 5200.

The Share Centre phone share dealing firm has reduced the cost of buying shares to a minimum of pounds 2.50. Details: 0800 800008.

And NatWest offer instant interactive sharedealing at 280 branches.

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