Fund managers are positive about market prospects for the year ahead, with almost three-quarters thinking markets will rise during the next 12 months.

The majority of managers believe the FTSE 100 will finish the year between 5,500-6,000.

Half of managers think equities will be the best performing asset class, although over a quarter (28%) predict gold will perform best.

Resources and emerging markets are tipped to be the best performing sector and region in 2010, according to the annual poll from the Association of Investment Companies (AIC). The survey canvassed opinion from fund managers representing £17.3 billion in assets under management.

Managers were divided on whether they would increase their gearing in the next six months with 28% planning to increase their gearing and 22% planning to decrease it. Around two-thirds (63%) of managers thought financing was still difficult and expensive to get from banks.

There were still large numbers of managers concerned about low growth prospects (28%), while 22% were concerned about the recession continuing. However 29% of managers said better than expected growth was their greatest cause for optimism.