Investor confidence in the markets has moved into positive territory, according to a survey from the Investment and Financial Services Association (IFSA).
The IFSA/CoreData Investor Sentiment Index rose slightly to 5 points, up 2.3 points since the second quarter of the year and 30 points ahead of where it sat six months ago.
"The small but positive move in the right direction demonstrates that investors are slowly becoming more confident about both the economic and investment outlook in Australia," IFSA chief executive John Brogden said.
The index also found a significant minority of investors were inclined to invest over the next three months.
Around a third of respondents were looking to top up existing investments, while one in four were very likely to purchase a new product or invest in new products, the CoreData report said.
Satisfaction levels with existing investments almost doubled from 7.8 points to 13.6 points.
Australian shares garnered most of the investor optimism, with two-thirds of respondents saying they expect the Australian Securities Exchange to perform better over the next quarter - the highest number since the survey began in 2004.
Investors are also anticipating that investments through direct shares, super funds and managed funds will benefit the most from investment markets.
"The financial services industry has to be aware though that while confidence has stabilised positively, it wouldn't take much to send investors running for the hills again," CoreData head of market intelligence Craig Phillips said.
