A study by the Association of Investment Companies (AIC) revealed that nearly three-quarters of fund managers believe the markets will rise in the new year.
Half of those questioned thought equities would be the best performing asset while more than a quarter chose gold.
Low interest rates and better than expected growth were the main reasons behind fund managersâ optimism.
The recession and low growth were deemed the greatest threats to the markets.
Annabel Brodie-Smith, communications director of the AIC, said: "After a strong market revival this year, fund managers are generally optimistic about the prospects for 2010, with most expecting to see markets rise and the FTSE end the year in positive territory.
âInterestingly this year's âgold rush' is tipped to continue with over a quarter of managers predicting that gold will be the top performing asset.â
She added: âWith the recovery underway resources are tipped to be the best performing sector next year and emerging markets are expected to continue their run of outperformance.â
Further findings from the study showed that fund managers were divided over whether to change their gearing during the next six months.
More than a quarter plan to adopt a âwait and seeâ approach in the first half of 2010.
By Jim Ottewill