Investors have not been rocked by recent stock market volatility, a financial services expert has said.

According to a survey by the Association of Investment Companies (AIC) there has only been a three per cent increase in non-investors avoiding the stock market in September 2007 compared to June 2007.

Furthermore, most wannabe investors are held back by a lack of knowledge rather than risk aversion, the study finds.

Director general of the Association of Investment Companies Daniel Godfrey commented that cautious investors may want to consider saving .

Cautious investors could consider regular saving, so that more shares are brought when prices are low and less when prices are high, he remarked.

Mr Godfrey points out that the results show the importance of good independent advice and long-term financial education for investors.

The survey also discovered that women are more cautious when it comes to making investments than men.

A financial expert suggested yesterday that investors could benefit from self invested personal pension schemes .

Managing director of Purplecircle Consulting Mark Andrews that self invested personal pension schemes are not just aimed at those with exotic assets .