CONTRARY to popular myth, professional gamblers do not swagger into a casino and risk all on a high-stakes wager.

Most aim for a steady return by making a series of small bets. The ordinary investor can emulate this strategy for success by drip-feeding their cash into an investment fund, rather than making one lump-sum investment. A tax efficient way of doing this is to wrap the fund inside an individual savings account (Isa).

Paul Wilmott, a specialist in derivatives and a manager of the Caissa Capital hedge fund, is a firm believer that gambling is a form of investing.

He says that adopting a strategy of drip-feeding into a fund mirrors the most effective gambling techniques and guards against the possibility of stock market volatility and a sudden crash in share prices.

“This way you can still put your money into a high-risk fund, with the potential to generate very good returns, while not exposing the capital to the same level of risk that you get when risking the full amount all at once,” he says.

Meera Patel, a senior analyst at Hargreaves Lansdown, explains: “If someone saved £100 a month over three years, up to December 31, 2003, in the average performing UK all-companies fund, it would have grown to £3,829.

“But an equivalent amount of £3,600 invested as a lump sum would have actually lost money over the same period. That investment would be worth £2,929.” She says that despite a 30 per cent rise in the stock market, share prices are still sufficiently undervalued to make a regular savings plan reap substantial rewards.

A saver investing £100 a month into the Unicorn Free Spirit fund, managed by Peter Webb, since its inception on December 31, 2001, will have made £4,237 from contributions of £2,400. Alternatively, someone putting £100 a month into Gartmore UK Focus Fund, managed by Ashley Willing, would have seen a £3,600 investment grow in value to £4,552 over the past three years.

Those looking to dip their toes in the water of a fund based further afield could go for the JP Morgan Fleming Japan fund. The Japanese economy is bouncing back after a gloomy past 13 years, prompting a revival in Japanese shares.

The cheapest way to wrap a fund inside an Isa is to go through a fund supermarket, such as Funds Network or Hargreaves Lansdown. This way, savers can often enjoy a substantial discount on the initial charges, usually set at 5 per cent, which can work out at a £350 fee for a £7,000 Isa investment. Savers can invest as little as £10 a month in some funds. The maximum monthly amount for a maxi-Isa is set at £583.