Confidence amongst investors appears to be improving, with an increasing number expecting the conditions of the investment market to get better in the next six months.
In its Great British Investor report, the Investment Management Association (IMA) found that a net balance of eight per cent of investors believed the sector would see an improvement between now and early 2010.
Furthermore, almost half said they thought that now was a good time to be making investments. This has not been borne out by activity, however, as the likelihood of investments increasing their interests has not increased by a significant level over the past 12 months.
Although there is still a guarded attitude among investors, improvements in the stock market has meant the reluctance to invest in funds that are perceived to be risky has subsided somewhat.
Less than one in four (23 per cent) now believe risk adverse investments are preferable, compared to almost four in ten (39 per cent) a year ago. Forty three per cent of investors said they would take advantage of an opportunity even if it meant some risk.
Richard Saunders, chief executive of the IMA said the report was further evidence that investor optimism is increasing.
"If investor confidence continues to gain momentum, investors may start returning to the markets in the near term. IMA's sales statistics suggest this may have started with the last six months showing healthy inflows and May's figures being the third highest level ever," he added.
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