Why should I invest in stocks and shares?

Over the medium term, direct investment in UK equities consistently outperforms most other types of investments, such as building societies' and banks' savings and deposit accounts.

Although share prices rise and fall, even the blackest Wednesday has done nothing to undermine the continuing upward trend in the performance of ordinary shares. In spite of the headlines, it is still the case that investment in a sensible spread of shares over a reasonable period will typically yield a significantly higher return than that offered by building society investments.

But it is not simply the rise in share prices which gives you a return on your investment - you also get income in the form of dividends and these should rise to reflect a company's continuing prosperity.