Investor confidence turned positive with the IMA GB Investor Confidence Index (UK GB ICI) reaching 106 in May 2009. Compared to six months ago, overall confidence has swung positively by 35 points on a scale of 0-200 with 100 being neutral, according to the latest survey by the Investment Management Association (IMA).

The IMA GB Investor Intentions Index (UK GB III) in May was 99, up by 10 points since November 2008. This shows investors on the whole are neutral about putting money into new investments.

"These findings suggest that investors are feeling more optimistic about the investment market than they did six months ago although they are still cautious about re-entering it," commented Richard Saunders, chief executive at IMA.

"This improved mood is consistent with IMA sales statistics which show modest net retail inflows into equity funds over the last two months but much healthier ones into corporate bond funds over the last six months with April's overall retail sales being the highest in three years."

Over 50% of investors think the current investment market has improved compared with six months ago. A similar proportion (51%) think now is a good time to put money into investment products.

Less than half (47%) of investors think the economic slowdown will last 12 to 24 months, an improvement since November when 58% of investors thought it would last 12 to 24 months.

Among those likely to increase investments over the coming 12 months, equities are the most popular investment option (51%).

Over half of investors who rate property as a good investment think the residential property market will continue to fall for 12 months or more before recovering.

Most investors (53%) think it will take over two years for the FTSE 100 to return to 6000.

The survey for IMA was conducted by YouGov, looking at the behaviour, confidence, intentions and concerns of Britain's retail investors. YouGov surveyed a cross-section of 4,396 investors holding one or more retail investment products May 7-11.

IMA is the trade body for the UK's £3.4 trillion asset management industry.