Sentiment among SMSF investors has improved, although the urge to hold and accumulate cash remains high.
This is one of the key findings of the Investment Trends September 2012 SMSF Investor Intentions Index Report, which found concern levels have reduced since January.
Equity markets have significantly improved since their March 2009 depths, when the levels of concern were 7.4 out of 10 (10 being extremely concerned).
Concern levels among SMSF trustees have reduced from 6.7 in January 2012 to 6.2 in September, the report said.
Furthermore, return expectations have risen over the last few months, with SMSFs on average expecting a 6 per cent return.
"That said, capital return expectations remain low by historical standards, and the five-year outlook remains at around 4 per cent per annum," said Investment Trends chief operating officer Eric Blewitt.
Despite the improved sentiment, the willingness to hold and accumulate cash remains high, while residential property continues to be perceived as the most overvalued asset.
Almost a fifth of surveyed investors planned to increase their allocation to cash, Blewitt said.
"This is clearly reflective of the ongoing concern that is prevalent among all investors."