There should be plenty of opportunities for investors this year, but most advisers suggest the stock market is still the place to be for the best long-term returns.

With interest rates set to remain at historically low levels for the foreseeable future, investors must face the fact that ordinary bank deposit type investments are largely a waste of time.

Banks and building societies are now offering minimal rates of interest with demand deposits of between £100 and £100,000 typically earning anything between 0.1 of a percentage point up to a maximum of 2 per cent in the current climate. Investors now have to consider other options to increase their funds and should shop around to find the savings product which best suits their needs.

All of the financial institutions offer pooled investment vehicles, some offering guarantees on the original amount invested with the rate of return dependent on the degree of risk involved and the timescale of the investment. These range from tracker bonds, unit funds, personal investment plans (PIPs) and personal equity plans (PEPs) and other special savings and investment products.

The introduction of the euro is the most significant change for investors this year and will now provide access to a much wider range of investment products.

Mr John Crowe, investment director at accountants KPMG, says investors can add offshore funds to their shopping list when mulling over their savings options for 1999.

Euro-denominated offshore funds are typically offered from Luxembourg and operated by global fund managers such as Fidelity. Investors can make fairly modest monthly savings, of say £50 or £100 a month into any of these funds, and can opt to cash in their investment whenever they choose.

"The money is allowed to grow tax free with investors paying tax on the eventual investment gain when they decide to exit the fund. For some people this may prove more attractive than making savings through additional voluntary contributions (AVCs) to a pension plan, for instance, as they can access the money at any time and they do not have to take out a life assurance policy when it matures," according to Mr Crowe. The cost structure is also very transparent.

On the other hand, contributions to AVCs can be made tax free out of your gross income, and still remain attractive. But Mr Crowe suggests it is "very questionable whether the tax break in this case is the be all and end all for investors".

For those prepared to risk their capital in the hope of making a killing in the future there are always companies looking to raise funds offering an equity stake and potentially lucrative returns to those prepared to back them.

At the moment, Mr Crowe says there are a growing number of information technology and Internet companies looking to bring in investors to fund their future growth and development.

"If you believe that IT firms and Internet companies will continue to boom there are a lot of schemes seeking investors. But you should bear in mind that this should only be considered as a pure flutter. Investors have to be prepared to lose all their capital," he says.

The property market, domestic or international, also deserves some consideration if you are seeking a home for your money although prices are now expensive.

Changes in legislation following the Bacon report last year have cooled the ardour of many investors and have undoubtedly made it more difficult to yield sizeable returns, Mr Crowe says.

Irish investors' interest in commercial property in Britain is also showing signs of waning but could remain a good choice for certain investors, particularly those prepared to form a consortium.

But like most advisers, Mr Crowe says the stock markets are probably the best bet for investors this year.

In the Irish market, independent investment strategist, Mr Frank O'Brien, offers his formula for investors hoping to make good returns in the medium term.

"It's not a highly fashionable strategy but I see real value in the second-line stocks for investors who are prepared to wait a couple of years. Stocks like Abbey, IWP, Greencore, Avonmore Waterford, Grafton, Golden Vale, Adare and Clondalkin can all be bought at relatively low valuations and will also offer good dividend yield, giving investors a better return than cash for the period of the investment," he says.

The leading stocks, such as CRH, Bank of Ireland and AIB should also continue to perform well this year, according to Mr O'Brien.

For those investing in stock markets outside the State he urges caution, warning that 1999 will be the year when the full brunt of the international financial crises seen in Russia, South America and Asia will begin to be felt throughout the global economy.

"Internationally, investors should be defensive and fairly cautious. Companies in the manufacturing sector internationally will find themselves under pressure due to excess capacity in those financially troubled markets. While the euro offers investors access to a wide range of stocks without incurring any foreign currency risk," he says.

European stock markets are relatively expensive though, but those venturing into the euro zone would do well to concentrate on sectors where rationalisation and consolidation is taking place, such as telecommunications and financial services, he says.