I would not envy any investor who is looking to invest in the UK market at the moment.

On the face of it things look quite positive. The FTSE 100 has risen by 12 per cent in the past 12 months and has consistently been above the magic 6,000 number for most of that time.

Add to that the painfully slow but ultimately improvements in GDP, and falls in both inflation and unemployment and the picture starts to look rosy.
To the average investor he/she may think now is a good time to go ‘full tilt’.

However this is apparently the time to be careful.

Don’t take just our word for it; add in the words of Invesco Perpetual income guru Neil Woodford, his track record – as well as the £20bn plus of assets he manages – qualifies him just about to advise investors on the current state of markets.

Investors only need look at the past few months of uncertainty to see how fragile markets really are. The threat of the US tapering its quantitative easing policy has already spooked bond funds and emerging market offerings.

Woodford argues those investors are set for a bumpy ride as markets have overplayed the strength of the UK economy.

He said: “The UK stock market’s rise of the past year has not been matched by a commensurate improvement in the economic outlook – and we anticipate that it is likely to remain volatile in the near term as it adjusts to the likely withdrawal of extraordinary monetary policy, at least in the US.”

With the FTSE 100 currently hovering around the 6,400 mark, surely the time to throw all your eggs in one basket is over. Income funds like Woodford’s coupled with other strong, stable offerings are the order of the day.

If you want something with a bit more gusto – a special situations fund for example – stick with a manager with a good track record, who knows what to do if markets move quickly and forces them to change their plan of attack.