Singapore residents are showing greater optimism when it comes to wealth investments albeit with also greater caution, the Citi Financial Quotient (Fin-Q) Survey 2009 reveals.

According to the survey, 13 per cent of the four-in-ten respondents who put investment activities on hold at the height of the global financial crisis have now resumed investing, while 31 per cent of them said they are open to the idea when the opportunity comes up.

What was notable with the findings was the marked return in Singaporeans' risk appetite, particularly on equity instruments. 54 per cent had chosen to enter stock marketing investing, while 28 per cent had opted to go for unit trusts or mutual funds. Lower-risk options like term deposits and government debt also gained popularity, with 19 per cent attraction levels for each.

The shift in investment habits, however, was not without a higher degree of caution, with a significant 42 per cent indicating that they are treading more carefully before making any money-related decisions. Just 39 per cent of the respondents believe that the worst of the financial crisis is over. 

The figures are in line with the top three concerns Singaporeans were found to have financially: rebuilding savings, meeting monthly expenditure, and retirement preparations. 60 per cent had admitted being affected by the recent crisis, with 39 per cent of them adding that their retirement savings had suffered the largest losses. 

Citibank Singapore head of wealth management Shrikant Bhat said that while these results are somewhat negative, the fact that investors are asking a lot more questions about the products they buy and investments they make is a very good sign of smarter paths ahead.

"They are more likely to view their investments within the framework of a holistic portfolio over a longer-term horizon," Mr Bhat said.

Justin Lewis, the managing director of CXC Research, which co-conducted the survey, echoed Mr Bhat's opinion: "The recent survey results in Singapore show that while the recent Global Financial Crisis had a negative impact on a broad cross-section of Singapore residents, a strong majority remain optimistic about their economic future. At the same time, while there is definitely room for improvement, the trend data over the past three years show Singapore residents continue to take small steps in the right direction."

The Fin-Q survey was conducted across eleven markets in the Asia Pacific region, including Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, and Taiwan from 6 to 15 October 2009.