UK equities are one of the most popular types of stock to invest in, not least because they contain many household names that consumers feel comfortable investing in, but also, for some at least, there is familiarity with the UK economy and investing scene in general which encourages individuals to take the plunge.

Investing in UK equities can take many forms; one can just go for a passive fund or ETF, if one is unsure about the ability of stock pickers; or if it is income one is after, then an equity income fund may be the option in that instance.

According to the Investment Association, UK All Companies was the best selling net retail sector in March this year, with UK smaller companies returning 19 per cent for the 12 months to March. UK equity income returned 15 per cent over the same period.

The big issue with UK equities is the economic outlook for the UK, and this is uncertain over the next couple of years. We have the general election - today - with polls tightening considerably at the time of going to press and then Brexit talks due to start soon after the result is known.

At the most it looks completely unpredictable, with pre-election stances seeing both the Europeans and the British squaring up to each other with increasingly bullish statements. The effect on sterling has been strong following the vote to leave the EU, which has had a consequent rise in inflation, but without the same rise in wages, or signs of an overheating economy, so there are no signs yet of rising interest rates.

While most people might be looking at today's figures, the uncertainty poses problems for those wanting to invest for the longer term. While foreign banks weigh up their options about what the long term prospects for being in the UK might be, and what its access to the single market might be, the retail investor is faced with equal uncertainty. 

As ever, it is best to build a diversified portfolio, and rebalance when seen fit.

Very few advisers believe in timing the market but put a longer term plan in place, choosing asset allocation based on the investor's attitude to risk, long-term goals and capacity for loss. This is the service that advisers provide, rather than reacting in a panicky way to sudden changes in the markets.

Melanie Tringham is features editor of Financial Adviser