EVER wonder what to do with that extra £50 (€63.49) a month? Many former savers are now thinking of becoming investors in the stock market. Despite the significant increase in public interest in the stock market, the high learning curve means mistakes are easy, and costly to make.

One way to learn about the risks, and possible profits, of stock market investing is through investment clubs. Investments clubs are usually groups of between six and 20 people who come together periodically to learn about and invest in the stock market.

The advantages of these clubs is that small amounts, usually £50 a month per person, are pooled together to buy particular stocks. Often a larger initial sum, such as £500 from each member, is invested at the founding of the club to create a sizeable amount for investment.

While the purpose of such clubs is to make money, they also serve as a way to meet people while learning something new about investing in the markets.

Setting up an investment club is an inexpensive prospect and does not require an affiliation with an investment club or professional assistance, although the latter is advisable. Structure is the most important thing to keep in mind says Mr Tom Healy, managing director of the Irish Stock Exchange.

"We think investment clubs are a good idea provided that investors coming together are very careful about how they structure it and are aware of what they may or may not achieve. There should be clarity about the role of the club and ownership of shares," he said.

Mr Healy believes the environment is ripe for investment clubs in the Republic. Following the lead of ProShare Investment Clubs, a not-for-profit organisation which is funded by the London Stock Exchange and British Industry, the Irish Stock Exchange hopes to promote investment clubs and investing in the stock market to the average investor. "We're planning to produce something later this year to help people establish investment clubs," he said.

In addition to structure and legal issues, investment club members should explore the tax implications of this type of investing with their tax advisers or the Revenue Commissioners.

Public interest in investment clubs was raised recently by Ms R., a Family Money reader from Cork who is interested in joining an investment club for women. An informal investment club called Acorn was set up by a group of women in Dublin two years ago. Although the club may now be closed to new members, it may be contacted through Marian Trimble at e-mail: trimble@indigo.ie.

Some investment clubs may choose to set up on a more formal basis through affiliation with an investment club organisation. The Investment Club Network (TICN) is an international organisation offering "Money Talks" evening lectures for £20, and weekend investment seminars for £500 that teach participants how to set up and run a local investment club. TICN offers advice and ongoing support services for member investment clubs.

Those who feel they need more knowledge before setting up a club or investing their hard-earned cash may choose to take classes or attend seminars on the financial markets.

IFTI is a conference organiser in Dublin that also offers courses on investing in the stock market. Beginner classes offer basic information on business and investment concepts and products. Intermediate classes explore investment strategies and the technical and analytical aspects of financial markets. Many educational organisations offer similar, but perhaps less comprehensive, adult evening courses for a lower price.

Before you start investing in the markets, make sure your personal finances are in order. If you have already set up a pension, life and health insurance, a savings scheme and have cleared any expensive debt then an investment club may be worth a look.

Proshare Investment Club Manuals may be ordered for £25 sterling (€37.58) by calling 00 44 171 394 5200; For TICN, "Money Talks" seminar information call 0801 232 866970; Acorn investment club for women, contact Marian Trimble by e-mail at: trimble@indigo.ie; for information on IFTI stocks and shares classes call (01) 661 6997.