Term deposits attracted more interest from investors this year, one expert has stated.
There has been "significant" interest in term deposits, as investors have become more risk-aware.
This is according to Jeff Mitchell, director of wealth management at Standard & Poor, who stated this year has been a "back to basics" one for personal investors, the Age reports.
He added: "They realised that their longer-term objectives remained essentially unchanged and the best prospect of achieving them was to actively re-engage with their savings and investments."
And this could have also led to an increase in people taking out savings accounts.
But Dr Shane Oliver, head of investment strategy at AMP Capital Investors, pointed out the strong Australian dollar and the effect of a higher interest rate both played their part in proving how sentiment can affect markets in 2010.
These comments come after the Reserve Bank of Australia opted to keep the official cash rate at 4.75 per cent for December, after it increased the level by 0.25 per cent at the beginning of November.
By Mark Hornby
