South African investors remain optimistic about the domestic stock market, with 53% thinking that the market will rise in 2015, according to the 2015 Franklin Templeton Global Investor Sentiment Survey.

Jo-Anne Bailey, Country Manager, South Africa, Franklin Templeton Investments, said the survey clearly shows the growing optimism in South Africa.

“Despite confidence in local markets, it is interesting to note that many people are considering increasing their global exposure over the coming years. We believe this is a positive trend as it helps South African investors diversify their portfolio across countries and asset classes,” she said.

The survey also shows that investors in South Africa believe real estate, precious metals and stocks will be among the top performing asset classes in 2015 and over the next 10 years.

Bailey said it is very clear that the industry needs to do a better job of increasing awareness and acceptance of equities and fixed income as core asset classes.

“There continues to be a strong preference for physical assets such as gold and real estate that needs to change,” she said.

When it comes to concerns, South African investors are most concerned about the health of the local economy, unemployment and inflation.

While the state of the South African economy is the primary concern, the sustained weakness of the rand has prompted worries about a rising inflationary outlook.

“Financial savings need to be encouraged through a mix of policy incentives and increased awareness. This will not only benefit the average investor, but also create long term, productive savings pool essential for economic growth,” said Bailey.

In terms of top investment goals for 2015, 61% of South African investors cite planning for retirement as their main investment goal for the year.

This is followed by purchasing a new home (37%) and emergencies (34%).

Globally, more than half (58%) of global investors surveyed believe their local stock market will post positive returns in 2015.

Ed Perks, CIO of the Franklin Equity Group, said: “Investors are optimistic, but that may not be based on a solid understanding of the markets’ performance. It’s more critical now than ever to really understand the underlying value of individual companies, industries and countries as we are likely to encounter some rough patches ahead.”

The 2015 Franklin Templeton Global Investor Sentiment Survey polled over 11,500 investors in 23 countries across the Americas, Africa, Asia Pacific and Europe.