Local financial planners expect a return from the Australian equities market of about 9 per cent for the next 12 months.
This expected return, excluding dividends, from the All Ordinaries for the next 12 is a three-year high for financial planners.
However, Investment Trends Analyst S M Shahed says planners continued to withdraw from margin lending.
The proportion of planners advising on margin lending fell to 45 per cent in 2013 from 55 per cent in 2012.
The total outstanding margin debt from the financial planner channel reduced to $4.4 billion in September 2013, down 13 per cent since December 2012.
However, in line with the improved market sentiment, the direct investor channel has begun to improve with an outstanding debt of $4.7 billion in September 2013, up $480 million since December 2012.
The Investment Trends Margin Lending Planner Report is based on a survey of 715 planners between September and November 2013.