Investors prepare to snap up bargain eurozone shares "Mistrust around the European markets is becoming more and more unwarranted," said Laurent Ducoin, head of the European team at French fund management house Carmignac Gestion. If you asked me 12 months ago, I would have said 'the UK investor is right to stay away, we have some problems in Europe and we should be very careful', but now it is less black, we have seen some positive changes. Financial advisers agree. Mark Dampier of Hargreaves Lansdown said that while it was impossible to call the exact bottom of any market, the price of European stocks was compelling. The bad news has already been priced into European equities, so they are very cheap. The market may well go down a little further, but if you wait too long you risk missing out on the upside," he said. David Dudding, who manages European funds at Threadneedle, said that investors may even have missed the very bottom of the market, as January has seen strong rallies. "If you are short-sighted, the bottom was a month back, but if you are looking to invest long term, we are still very positive on Europe," he said. Sceptics should be comforted by the appointment of the new president of the European Central Bank, Mario Draghi, who, within two months of his appointment, has reversed interest-rate rises, encouraged European governments to adopt a fiscal plan and given banks unlimited access to euro and dollar funding. New Italian president "Super" Mario Monti is also setting the right tone. "Robin Geffen of Neptune met with Mario Monti recently, who is convinced that Europe will survive and be stronger for this turmoil," said Alan Steel, who runs his own asset management company. So Europe funds are probably a decent punt for a few years on the basis they are cheaper than they will be when things look perfect again. Some of Europe is, of course, not worth the risk. Édouard Carmignac, founder of Carmignac Gestion, said that sovereign debt was best avoided. Countries whose solvency is not in question are not attractive due to their low yields, and government bonds from those who have solvency issues, whose funding is still in danger, the risks involved are not worth it. His colleague Mr Ducoin said that he held no Greek stocks at all, and was severely underweight in both Spanish and Italian companies. One of the two Spanish interests held in his fund is retail company Inditex, which owns Zara, as it has an international revenue stream. He also outlawed European financials and utilities as he said while they offered some attractive-looking yields they were too linked to the public sector. Dan Ison, European equities fund manager at Threadneedle, advocated avoiding exposure to domestically focused businesses - regardless of sector. "We feel that markets are likely to be increasingly discriminating between domestic and global businesses over the coming months," he said. This does not lead us to any significant sector conclusions; rather, the source and sustainability of earnings will be scrutinised at a stock-by-stock basis. He likes Nestlé, for example, which draws 40pc of its revenue from emerging markets and is growing its dividend. Funds to buy If you are brave ... For those who don't mind a bit of volatility, financial adviser Alan Steel recommends Jim Campbell, who runs the JPM European Smaller Companies fund, as the smaller companies sector was hit the hardest and has the most potential for growth. If you are cautious ... Wealth manager Philippa Gee tips Vanguard FTSE Developed Europe Ex UK Equity Index. A tracker fund, so a useful tool if you want to remove the risk of the fund manager from the equation. A low annual fee of 0.25pc is applied, which attracts investors focused on charges. Just ask yourself if this is an approach you want when markets need careful monitoring - having an active fund manager could be a useful help at this time, providing they read the markets correctly. If you are looking for income ... Mr Steel tips Invesco Perpetual European High Yield, "run by two of the UK's most experienced bond managers Paul Read and Paul Causer, it carries a yield of well over 8pc right now."