For the inexperienced investor, the world of stocks and shares can be intimidating, shrouded as it is in mysterious jargon. Fortunately there are plenty of products and services that allow novice investors to hand over the difficult decisions to the experts, writes Caroline Madden

Buying into an equity fund, for example, is an easy way to access a diversified basket of shares, although costs will be higher than trading directly in shares.

Life assurance companies - and brokers - offer a huge range of unit-linked equity funds, catering for all risk preferences. Several Irish stockbroking houses also offer equity funds.

Investors can expect to part with about 1.5 per cent of the value of the fund in management fees each year, which may seem small but, when compounded over time, can be significant. Entry, exit and switching charges may also apply, depending on the terms of the particular fund.

Alternatively, investors who would like advice and guidance in building a share portfolio can use the services of an advisory or discretionary stockbroker. Advisory brokers not only deal in shares on behalf of their clients but, as the name suggests, also advise on what shares should be bought and sold.

Discretionary brokers differ in that they have the authority to buy and sell shares without prior approval from the client.

First-time investors may also wish to consider exchange traded funds (ETFs), which provide exposure to a diversified portfolio of shares through one single transaction. The Iseq 20 ETF, for example, is a fund that holds a basket of 20 leading Irish shares, and offers a simple, low-cost entry to the Irish Stock Exchange.

Of course, many small investors prefer to take a more active role by trading shares directly through an execution-only stockbroker, rather than buying into a fund or letting their stockbroker make the decisions.

Rory Gillen, course director for the stock market training company Invest Like The Best, compares the merits of the two approaches: "The indirect route is excellent in terms of controlling risk, but there are costs involved. The direct route is great if you have an interest, but it demands you have to spend more time at it."

The internet can be an invaluable research tool for "self-directed" investors, but financial adviser David McCarthy warns traders not to be influenced by tips given in chat rooms. He also advises amateur investors to restrict their initial exposure to shares to about 10-15 per cent of their overall portfolio.

Online share trading is becoming increasingly popular with Irish investors, although we still lag considerably behind the US, Britain and continental Europe in terms of penetration.

As well as being more convenient, online trading can be cheaper. For example, Davy stockbrokers charge a minimum commission of €25 per online trade, compared to a minimum phone transaction fee of €100.

Sharewatch offers one of the lowest commission levels in Ireland - its minimum fee per online trade is €19.95 - but this is still nowhere near the cheap rates in the US, where commissions can be as low as $7 per trade.

Investment clubs are also growing in popularity. Enthusiasts considering setting up such a club can find a guide on the Irish Stock Exchange website, www.ise.ie.