Retail investors in Singapore are becoming more pessimistic in their investment prospects compared with six months ago, according to a survey released by JP Morgan Asset Management.
Conducted in December 2011, the bi-annual poll, which surveyed 502 investors, discovered that those who were neutral or upbeat six months ago have mostly become cautious. Consequently, the investor confidence index fell to 86 points, from 134 a year ago.
The respondents of the study had at least five years continuous experience in investments and have an annual personal income of over S$60,000.
Almost 80 percent of the respondents stated that they are looking for "capital preservation" or described themselves as being "fairly cautious".
Also, a substantial number of respondents indicated that they are not selling down their portfolios, while 75 percent stated that they will maintain or increase their current investment over the next six months.
"The trend has been a flight to quality and to safe haven investments such as deposits and bond funds that are generally less volatile than equity funds," said Brian Tan, Head of Retail Sales at JP Morgan Asset Management, Singapore.
"We expect it will be more of the same in the coming months although we think investors should diversify and also invest in riskier assets given the attractive valuations," he added. Related Stories:
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