Put it in the bank - New Zealanders are putting their cash in term deposits, with just 6 per cent favouring shares, according to a new survey. Photo / Thinkstock
Only 6 per cent of investors think shares offer the best rate of return, while rental property is still a popular investment class, according to a survey by ASB.
The survey found that investor confidence is improving, term deposits remain the most popular investment vehicle and KiwiSaver is more popular
than ever before.
During the three months to December 31, the number of investors expecting their returns to improve climbed a net 4 per cent to 19 per cent.
Term deposits are back at a level of popularity last achieved in the third quarter of 2008
They are the most popular investment class, with 21 per cent of investors believing they offer the best rate of return, an increase of 1 per cent on the previous quarter.
Rental property remained in second spot with 14 per cent of investors favouring the asset class. Bank savings accounts dropped 2 points to 12 per cent, followed by KiwiSaver at 11 per cent, managed funds on 9 per cent and shares at 6 per cent.
"The results show that old habits die hard when it comes to rental property," said Jonathan Beale, ASB's head of private banking and wealth management.
"Even though rentals slipped steadily in popularity following the giddy heights reached before the recession, rental property remains a firm second when it comes to views on best investment returns."
The survey comes at a time when the Government is considering its response to a Savings Working Group report recommending a range of measures to encourage saving.
Also, the Government is proposing to partially privatise four energy companies and reduce its stake in Air New Zealand.
It is hoped that the listing of stable large energy companies will help develop the sharemarket. But Treasury has said that the gains for NZX from privatisations will be modest.
- NZPA
