Expert view: 'View current turbulence as part of a long-term process'

People investing in the UK and world equity markets have seen significant falls in the value of their portfolios.

In practical terms those investing in line with the indices (in tracker funds) will have seen about 1,100 wiped of the value of each 10,000.

The key question now is how to react.

While it is always difficult in moments of uncertainty, it is important to keep a good grasp of the "fundamentals" in times of crisis. The first obvious point is that it is rarely a good idea to sell an asset when it has just fallen in value.

If you do not need to sell in the short-term, the best medium to long-term advice could be that this is a time to retain your funds and not a time to sell.

This remains the case unless your aims for the money you've invested or your circumstances have changed. In fact if you're sitting in cash, relatively low real returns make this a good time to buy into the market at what could prove to be low valuations.

It is important to recognise that while the fall in equity values will have a short-term impact on Isas, with-profit endowments and pension funds these are not investments which are undertaken over the short term. You should view the current turbulence as part of a long-term process.

The key actions to take are to understand the impact on you; avoid acting in haste unless it is absolutely necessary; to invest and benefit from any rebound where you have cash available and have experience of equity investing; and to take professional independent advice.

• Frank Williamson is managing director of PKF Financial Planning.