Amid reports that Ireland and Portugal are edging closer to a bail-out, commentators have urged investors not to panic to the situation in the Eurozone, and instead take advantage of cheap stocks.
"Despite the headline news, we remain optimistic at this time," said Ross Henderson, multi-asset fund manager at OPM.
"Whilst the situation in the PIIGS economies (Portugal, Italy, Ireland, Greece and Spain) will certainly add to volatility in the Eurozone, we see value in the European equity market."
Henderson said that he has actually increased his exposure to Europe in recent months, and did not rule out the possibility of becoming more overweight: "OPM Balanced Managed was underweight in Europe at the start of the year, but after the Greek crisis blew over in May time, we became far more aggressive, and took advantage of low valuations."
"The weak Euro has actually worked out very well for us, as it has improved export margins. We look to invest in funds with a high exposure to emerging markets, where demand remains alarmingly high. BMW exports to China and India have been though the roof."
Chelsea financial services managing director Darius McDermott said he believed reports of an imminent collapse in the European Union have been overstated. Financial Express data shows that Europe excluding UK has underperformed UK All Companies and the FTSE All Share by nearly 9 per cent in the last year.
Performance over 1-yr
Source: Financial Express Analytics
He said: "Europe is split at the moment. With problems in peripheral Europe and particularly the Ireland crisis on one hand, you also have countries like Germany that have a very strong GDP and a high class export industry which is benefitting from a devalued Euro."
McDermott echoed Henderson's view that investors could benefit from low valuations in the long-run if they invest now.
"With what we have been hearing from fund managers, there is no need to panic. You don't have to have these peripheral countries in your portfolio. If Europe survives, and I have no doubt that it will, now is perhaps the best time to buy European equities and bonds. Opportunities often appear when fear it at its greatest, and stocks are cheap."
He added: "Ireland and Portugal are a small part of the Euro index. If the crisis spread as far as Spain, then Europe could be in really big trouble. This would test the willingness of the big countries such as Germany to bail out their neighbours. At this time though, investors should hold their nerve."
Laurent Millet, manager of LV= European ex-UK Growth said that there was still potential for good investments in the PIIGS economies: "Though we avoid financials in these countries, there are some superb companies out there. In Spain, we have had significant returns from Inditex and Viscofan. It is important to remember that up to 40 per cent of investment in the Europe ex UK sector comes from outside the Eurozone."