"We are not seeing people leaving index funds but nor are we seeing much money coming in," says Mr McNaught
"Index funds still represent excellent value because of their low charges, although actively managed funds are attracting more interest at the moment."He suggests that investors wary of market turbulence look at three areas: gilts and bonds; fixed-interest investments; and cash.
Lewis McNaught, director and head of retail at Gartmore Investment Management, says: "It is not a time for the fainthearted and we have probably not yet reached the point where people can pile in and buy up underpriced equities.
adds: "Investors are not panicking.
We have been preaching the gospel of long-term investing and taking at least a five-year view; hopefully this message has hit home."Mr McNaught
says there is still scope for equity investment in selected areas in the US and Europe, but less so in the UK and emerging markets.Many experts have suggested that index-tracking funds would suffer in a slump because they can only follow the market down, but this doesn't seem to have happened yet.