Sack your fund manager - you can do a better job yourself It is not unusual for fees and costs to top 3pc of the value of the fund every year. Since UK shares yield on average 3.5pc a year - that is, you can expect to receive £3.50 in dividends for every £100 you invest in shares - it becomes clear that all the dividend income is being swallowed up by the fund. In effect, only the capital gains, those made by selling shares at a higher price than they were bought at, are coming to the investor. Over time, dividends contribute roughly similar gains to those achieved from rising share prices, a fact that is widely ignored because all stock market talk is about movements in the FTSE 100 index. Since the index is still below its peak at the top of the technology bubble, dividends have contributed all the overall gains of the past 13 years. For a fund manager to do better than you can do for yourself, he or she must buy and sell more frequently to take advantage of short-term share movements, thus adding to dealing costs. The manager must, in fact, do significantly better than you just to keep pace with what you can achieve for yourself. Yet investing in shares was never easier. You can set up an account online or through the offices of any broker willing to handle small private clients. Lists can be found on the internet or through the London Stock Exchange. Set up an Isa account and, if you have more than your annual Isa entitlement of £11,520 available to invest, an ordinary share dealing account as well. Choose the best place to invest with our guide to investment 'platforms' Start with five or six companies in different lines of business and spread the amount of investment pretty evenly, about £2,000 in each company. Choose solid companies you have heard of, concentrating on ones that make consistent and, preferably, rising profits and pay rising dividends. Every company website contains results for the past five years so you can easily check progress. Many such companies yield more than 3pc, some as much as 5pc. Compare that with a savings account. Even with cash Isas you are likely to have to tie your money up for at least a year to get anything even approaching that. The shares that pay the safest dividends Look in the stock market table in The Daily Telegraph's Business section every day for the yields of UK companies. And read the section daily for important news of how companies are faring. It is admittedly terrifying the first time you decide to make an investment and you have 15 seconds to press the "deal now" button. But not as terrifying as your first kiss - and think how quickly you got the hang of that. Rodney Hobson is an investment writer and the author of books for less experienced investors, including "Shares Made Simple" and "How to Build a Share Portfolio."