For the first time since the financial crisis, Europe's economy is back on track, with the European Central Bank's monetary policy stance having paid off, and European companies are posting profits this year.

Politically, there has been little upheaval. Whereas the UK and US are currently going through some political turmoil, many of the elections in Europe have not produced the support for populist parties that investors were worried about.

As a result, UK investors are suddenly piling back into European equity funds and getting exposure to the region through other asset classes.

Roland Grender, a senior analyst at Crux Asset Management, suggests: "European markets are in vogue this year due to a number of factors. In comparison with last year there are some economic green shoots emerging in terms of improving consumer confidence and PMIs.

"Employment is tightening in some European countries and you could make the argument that industrial capacity is also stretched in some areas.

"There have also been constructive political developments in France, Germany and Holland which have caused fears of extremist government policy to recede. Europe’s lower valuation relative to other markets, especially the US, has also helped drive a relative rerating."

This guide takes a closer look at the reasons for Europe's recovery and asks whether it risks being derailed by other factors. 

It also considers where the opportunities are in European equities and the outlook for fixed income.

This carries an indicative 60 minutes' worth of CPD.

Contributors to this guide include: Chris Hiorns, manager of the Amity European fund at EdenTree Investment Management; James Rutherford, co-head of investments for European equities at Hermes Investment Management; Jeff Taylor, head of European equities at Invesco Perpetual; Nick Davis, fund manager, European income at Polar Capital; Olly Russ, European income fund manager at Liontrust; Rogier Quirijns, senior vice president and portfolio manager at Cohen & Steers; David Stubbs, head of client investment strategy for EMEA at JPMorgan Private Bank; Guy Foster, head of research at Brewin Dolphin; Kommer van Trigt, head of global fixed income macro at Robeco; David Zahn, head of European fixed income at Franklin Templeton Fixed Income Group; Chris Iggo, chief investment officer, fixed income at Axa Investment Managers; Ritu Vohora, equity investment director at M&G Investments; Wouter Sturkenboom, Russell Investments; Philip Webster, BMO Global Asset Management; Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers; Tristan Hanson, manager of the M&G Global Target Return fund; Léon Cornelissen, chief economist at Robeco; Dylan Ball, executive vice president, portfolio manager at the Templeton Global Equity Group; Edward Rumble, portfolio manager of the RWC Pensato European Equity fund; Roland Grender, senior analyst at Crux Asset Management; Eurostat; Investment Association; Rathbones.

eleanor.duncan@ft.com