Most financial planners typically expect Australian shares to return around 10 per cent excluding dividends over the course of 2011, according to research by Investment Trends.
The December 2010 Investment Trends Adviser Product Needs Report, based on a survey of over 700 financial planners, found that over 90 per cent of planners expected positive returns from Australian shares this year.
According to the Vanguard 2010 Index Chart released in September last year, Australian shares delivered an average annual return of 11.1 per cent in 2010.
However, Investment Trends analyst Recep Peker said volatility was still a deterrent to planner clients investing all of their funds.
“Ninety-three per cent of planners say their clients have a build-up of excess cash that would have otherwise been invested in growth assets, but is not due to volatility,” Peker said.
While a quarter of planners say these clients have already begun investing some of their excess cash holdings, 58 per cent believe the main triggers for clients to invest the money will be confidence that the economic recovery is real.