Research from Skandia International has revealed that as the global stock markets continue to exhibit volatile behaviour, investment flexibility and fund range remain the most important features for offshore advisers and investors. Seventy-nine per cent of offshore advisers said investment flexibility was an essential component of offshore investment products. As a result, cash investments remain high, as investors take comfort in cash's relative stability. Gold also continues to draw investors. According to figures from Skandia's own book of business, gold has shown a remarkable increase in popularity, with the BlackRock Gold and General fund moving from the 16th most popular fund in the third quarter of 2007 to become the third most popular fund in Q3 2008. Steve Ellis, head of Skandia International's investment proposition, said: "It is no surprise that in the current climate investors are taking a more cautious approach to investing. As investors try to find a safe haven for their funds, investment flexibility remains a must. "With equity prices currently low, I expect that there is good value to be had for people taking a long term perspective. In a bear market cash and gold are often considered a short-term safe haven and somewhere to preserve capital." Other asset classes have also seen an increase in investment, including Indian and Chinese equity funds, further emphasising that flexibility and choice of fund range remain a 'must have' for investors. Cautious funds also make an appearance in Skandia International's top funds, showing that where investors are continuing to back equities, they are doing so with a cautious approach. Ellis added: "It is also interesting to see that investors are still turned on by some of our less mainstream fund offerings such as Indian and Chinese equities. "With this in mind, it will be interesting to see how and if investment patterns change in Q4 following the latest stock market activity."

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