Investors are still risk conscious despite signs that investor sentiment is improving, Bendigo Wealth has claimed.
While investors are starting to look beyond term deposits as the cash rate continues to drop, investors who search for yields are still likely to take less risk than in the past.
"I think there is a total lack of risk-taking in the industry right now," Bendigo Wealth executive John Billington said.
"I think when the investment sentiment starts to grow people will start to look at taking risk, although it will be a smaller amount of risk than they might have taken in the past."
Tough economic conditions over the past few years have meant investors have been more risk-averse in the market.
Term deposits and cash investments have been popular asset choices, but investors should look elsewhere if they want to build wealth, Mr Billington said.
"Money has been flowing into the banks ever since the global financial crisis occurred in the form of cash, but my view is that it is not going to stay there," he said.
"I think over the next 18 months people are going to start looking at alternative investment opportunities than just term deposits."
While the market looks set to rebound over the next year, Bendigo Wealth has said the full effects of market correction will not be felt until the end of 2013.
"I think right now we're in a lull, we're right on the edge, but I can certainly see that there is a light at the end of the tunnel," Mr Billington said.
"This might be the right time to build wealth and the only way to do that, of course, is to take some level of risk around your investment strategies."
