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With-profits funds are not as bad as many people are now portraying them in the light of the scandal at Equitable Life. In fact, many investors are still attracted to the concept of a quite low-risk diversified fund that balances out market fluctuations.

The positive and negative aspects of technical analysis in investing are discussed. It is suggested that no investment decision should be based entirely on a chart, regardless of the strength of the technical signal it is giving.

The investment techniques used by Jessie Livermore, a Wall Street investor who was very famous in the first half of the 20th century, are discussed. He traded with the flow of the market and often fed money into the market, constructing a position in stages.

Gilts, or UK government bonds, offer both income and capital returns that are guaranteed in cash terms, as long as they are held until maturity. When inflation does not increase, bonds are safe investment destinations, and when inflation falls they could also produce capital gains.

Forecasts for the performance of financial markets in 2002 are assessed. It is suggested that investors still need to be quite conservative in their asset allocations. However, they should also be preparing to boost their equity exposure in preparation for the next bull phase.

An investigation of the investment strategies of Shelby Cullom Davis gives an insight into the best techniques for successful long-term investing. It is not necessary for a share to grow very rapidly, but it must sustain a more modest rate through the peaks and troughs of the economic cycle.

Many professional investors believe that something more than a temporary revival in a secular bear market is taking place. However, this view may well prove to be misguided. Fund manager Bill Mott believes that, while the worst of the bear market has gone, it is still appropriate to adopt a defensive stance.

There are many challenges associated with successful investing. There is generally very little real innovation in investing, and this is why reading financial history is more helpful in decision-making in investment than reading the current financial press.

The terrorist attacks in the US may prove to be a turning point for the financial markets, bringing an end to a period of complacency and unrealistic pricing. In the short term, however, there is considerable uncertainty. Investors should keep a relatively cautious balance between equities, bonds and cash in their portfolio.

Investors looking for direction at a time of great upheaval, as has been seen after the terrorist attacks in the US, should avoid the adventurous managers who run many actively-managed funds. Instead, they should stick with experienced managers and should seek balanced diversification in order to manage risk.

Investors should pay more attention to the amount of risk they are taking as the market rises. It is possible to become exposed to a higher degree of risk even if the returns being gained from the stock market are high.

It is vital to be extremely cautious about any form of investment advice. Successful investing requires determination, and investing should never be seen as exciting.

Trends towards widening the investor base of hedge funds are discussed. It is suggested that those considering investing in hedge funds should exercise great caution.

Investors must take care to distinguish between trading and strategic considerations. A clear long-term plan must predominate, but it is also worth looking for attractive short-term investments.

Trends in bear markets are discussed. It is argued that there will continue to be moneymaking opportunities in the equity market, but that these will not be as freely available as they have been during recent years.

Advice on choosing investment options is presented. It is suggested that the Japanese stock market offers attractions for investors, especially those whose Isas are dominated by UK or US stocks.

The challenges associated with share trading are discussed. It is argued that a successful trader needs a trading method and a way of controlling loses on bets that are unsuccessful.

The benefits of indexing as a core element of an investment strategy are discussed. An index fund has a very good chance of giving a return that surpasses at least three-fifths of actively managed funds in the same sector.

Few investors give sufficient thought to the overall shape of their portfolio. European investment professionals are increasingly considering the concept of style investing and style analysis.

Issues concerning investing in hedge funds are discussed. Particular attention is given to the views of fund manager Crispin Odey.

The investment philosophy of Charlie Munger, the long-term business partner of Warren Buffett, is discussed. He believes that the only way to be successful is to master 'multiple mental models.'

Compound interest indicates that small differences in rates of interest can make a very significant difference over the long term. It also indicates that time is the fourth element of investing, after returns, risks and costs. An inverse compounding effect reduces the risk of holding shares most significantly in the first five to 10 years after purchase before falling to a narrow long-term range of between 4% and 8%. Investors should be aware that the law of compounding dictates that anything that reduces the annual rate of return will have a significant long-term impact.

There are a number of problems associated with investing in emerging markets. Many emerging markets have enjoyed high growth rates over prolonged periods, but it is important to remember that high rates of expansion are not inevitable. Furthermore, the only way to invest in emerging markets without taking on very high levels of risk is to purchase a diversified regional or global emerging market fund. With such funds, investors are not able to decide about country allocation or to purchase the stocks themselves.

It is quite difficult for amateur investors in the UK to obtain information about tracker funds, as there is no single source giving a comprehensive list of these funds. When choosing a tracker fund, the first step is to eliminate those with very high minimum investment requirements. Investors may also feel that there is no point choosing a tracker fund that operates charges on the same basis as an actively managed fund. This would eliminate all funds with a bid/offer spread, an annual management charge of more than 1% and an initial charge of any sort.

There are signs of a revival in the investment trust sector as many trusts begin to acknowledge what they must do to attract new retail investors. Many are taking advantage of the abolition of advanced corporation tax to buy back their shares, and stronger emphasis is being placed on shareholder value. The sector has been characterized by underperformance for some time, but it appears that this may now be coming to an end.

Most investors in the UK tend to invest through a unit trust or other form of collectively managed fund, rather than owning shares directly. This is generally a sensible approach, although funds can often be too expensive for what they provide. Index funds offer a sensible route into the stock market, but it would be wrong to present indexation as the only solution. It may be preferable to invest directly in the stock market, as long as you have the necessary knowledge.

It is important to be cautious about investing in a high-income fund. Investors must be aware that high-income funds invest in an extremely wide range of different forms of investment and that high yields can involve significant levels of risk. Care should be taken to investigate the fund's performance records, taking into account the fact that income may be achieved at the expense of capital growth. It is wise to choose a fund with a good reputation and a consistent track record.

The key issues of concern in the fund management business are the impact of the Internet on the way consumers purchase and sell investments, the continued overvaluation of Wall Street and the shift towards pan-European investment markets following monetary union. Small cap shares and those selected by value investors performed very badly in 1998. Large growth stocks have performed very well since the mid-1980s, but it must be presumed that other types of stocks will outperform more frequently. It is now time to look at unfashionable stocks, especially Japan and smaller companies.

Index tracking funds are not the best solution in every market. However, for most investors inexpensive index funds are the best way of establishing a core holding of equities in an investment portfolio. The success of index tracking funds in the UK is forcing actively managed funds to reassess their approach. The best actively managed funds should be able to survive, but investors should ensure that they obtain good value for money.

There has been a sharp rise in interest in bond funds as the yields on bonds appear increasingly attractive in a climate of falling interest rates and inflation. However, it is wrong to assume that bonds are automatically or always low-risk investments. Sources of risk relating to bond funds include the maturity profile of their holdings and the cost structure of the funds. Some bondholders may be negatively affected as bond funds take on increasing credit risk in order to increase returns.

With-profits endowment policies have traditionally been seen as a low-risk form of investment. They are almost totally controlled by the investment manager, with the policy-holder having very little say in how the money is invested. With-profits policies do not offer much flexibility, especially as there can be heavy penalties for ceasing to make premium payments before the end of the term. These policies are also associated with high costs, and these factors make their future uncertain.

It is important to be aware of the costs associated with investments, especially shares. Many investments have been performing very well in recent years, and this has encouraged investors to overlook costs. However, nominal returns from all types of investments are now set to fall as inflation and interest rates decline, and this makes it essential to consider costs. Research indicates that there are significant differences between the costs charges by different providers of investment products. In many cases, these costs are not justified by performance.

The current rise in share prices cannot be justified by reasoned argument, and promoters of shares can only really justify purchasing at present levels by stating that share prices are rising because they are rising. Policymakers are clearly concerned that the current bull market will end in a situation where prices are pushed up to extremely high levels, probably as a result of excessive liquidity in the economy. All long-term investors must be in shares to some extent, but the real issue is how exposed they should be.

It is becoming increasingly widely accepted that passively managed funds, which track a particular index, can bring much higher yields than those which are actively managed. Barclays Global Investors, for example, now has around $350 billion of investors' funds in passively managed funds, and is the leader of this sector in both the UK and the US. The shift towards passively managed funds is mainly the result of the introduction of performance measurement techniques which have increased awareness of the problem of underperforming actively managed funds.