Nearly two-thirds of savers are running scared of shares, with half saying the volatile stock market is too risky.

One in five say they are worried about making the wrong choices, according to research by unbiased.co.uk, a website giving access to financial advisers.

The website says: "Following a fortnight of market turbulence, nearly one-third (31%) admitted they feel investing is too risky.

"Despite the current low-interest environment and lack of inflation-busting savings accounts, 15% of cash-savers believe they can get better rates with a deposit account or cash Isa."

Obstacles for would-be investors include knowing how to buy and sell stocks and shares, which products represent best value, and understanding the terminology.

Almost 20% of savers said shares would be the preferred choice if they were to desert their savings account, including shares held in an Isa.

At the top of the worry list comes "knowing when to buy and sell investments". Six weeks ago, with the FTSE-100 at its highest level since 2007 and approaching its 1999 peak of 6930, new and old investors encouraged to buy shares at that time may be looking at this week's 6300 level and wondering if they got it wrong.

However, a new report from the Association of Investment Companies (AIC) suggests that, in the absence of a crystal ball, the key to success in shares is getting into the market and staying in, not worrying about the optimum time to buy or sell.

Someone putting £100 into the average investment company even at the "top of the market" at the end of December 1999 would have more than doubled it to £226 by the end of May 2013.

Investment companies or trusts invest in the shares of other companies, classed by sector, and the average UK Growth trust has turned the £100 into £272. To beat inflation a return of around £150 would have been needed.

Of course, managing to get in at the "bottom of the market", in March 2003, would have been even more profitable, turning £100 into £347 or £400.

For many small investors, 'drip-feeding' money into the market, perhaps through an investment trust savings plan, is the ideal solution.

For the typical investor paying £50 a month into the average trust since May 2008, the return has been £4140 on the £3000 invested, almost £250 more than the return on a £3000 lump sum investment made at the same time, says the AIC. The figures include a 3.5% deduction for fund charges, stamp duty (0.5%) and market spread (the gap between buying and selling price).

The AIC's Annabel Brodie-Smith said: "While market timing can have a significant impact on returns, given how difficult this can be the performance figures illustrate time in the market is key to stock market returns. Regular investing can be a useful way of reducing your risk profile, because investors buy fewer shares when prices are high, and more when prices are low."

Meanwhile, for investors already in the market and looking for ideas, the government attempted to give small and medium-sized companies (SMEs) a funding boost this week when it confirmed smaller, riskier, Alternative Investment Market shares would be eligible for tax-free Isa investing from the autumn.

"The change means an individual saver could invest up to £11,520 in the current tax year directly into SME equity markets within their Isa and any gains arising from the growth of the investment would be tax-free," the government said.

A survey by Barclays Stockbrokers found 25% of their investors would definitely bring AIM shares into their Isas, and 29% would think seriously about it.

Mike McCudden, at Interactive Investor, commented: "Assuming interest rates are going to stay depressed for a while yet, many looking for a relatively low-risk investment will continue buying into stocks. It's invariably going to be the household names that win. However, this new attraction of tax-free returns on AIM stocks certainly has the potential to drive trade among those looking for a more diversified portfolio."

Adrian Lowcock, at Hargreaves Lansdown, warned: "The AIM market does tend to follow trends and we have seen in recent years that commodities and mining stocks are very popular.

"AIM shares can be very volatile even over a short time period so investors should be wary of risks. It is clear that stock selection and expert investment knowledge are essential when it comes to investing in AIM. I prefer taking the approach of investing in a fund such as Marlborough Micro Cap or Cazenove UK Smaller Companies fund."

From the peak of the market at the beginning of 2000, the AIM index has fallen by 76% – and between June and December 2008 it crashed by a horrifying 62%.

Patrick Connolly at financial advisers Chase de Vere said: "There is real danger investors could be enticed by impressive short-term performance figures after we have periods when AIM shares have performed well. There is the potential to make big gains but also the risk that you could suffer major losses."

CASE STUDY

Retired IBM manager William Faith, from Bo'ness in West Lothian, bought his first shares when British Gas and BT were privatised in the 1980s.

He says: "I went into investing in the old 'tell Sid' days. That's what got me interested, and it has been a hobby. I like beating the system."

For the past 20 years he has favoured investment trusts as being cheaper and easier to buy and sell than unit trusts, and his holdings include the Scottish trusts Standard Life UK Smaller Companies and Aberdeen Asian Smaller Companies, which he buys using platforms such as Bestinvest. On whether the ability now to hold AIM-listed smaller companies directly in his Isa might be attractive, Mr Faith says: "I do have quite a few AIM stocks, but they are a bit more risky."