ASB's quarterly Investor Confidence Index has found investor confidence has fallen, with the popularity of KiwiSaver also taking a hit.
The Index shed 7 points in the three months to June - sliding to a net 3%.
ASB Wealth Management head Jonathan Beale says caution reigns among investors with most respondents supporting term deposits as the best value investment, followed by rental properties and savings accounts.
He says that while the overall dip in investor confidence is probably due to the Christchurch earthquake, a further decline is likely following recent turmoil in world markets.
Mr Beale says 9% of those surveyed thought KiwiSaver offered the best returns - down 3% on the last quarter.
He says the drop in KiwiSaver's popularity is probably related to recent returns, but is also due to changes to the scheme in this year's budget.
However, he says it should soon recover the lost ground since people are saying they are going to use it as their primary source of retirement income.
"As we move forward, people are starting to see a larger balance there and once people start seeing a larger balance they get much more interested and see that it's going to provide them with a pool of money for their retirement years," he said.
