ASB Bank says the publicity associated with the float of Mighty River Power has helped boost investor confidence to a two-year high.
The bank's latest investor confidence index jumped to a high of net 18% in the first three months of this year - a level not seen since the end of 2010.
Rental properties were still the most popular investment, while term deposits and managed funds have fallen down the list.
But ASB head of wealth advisory Jonathan Beale says the sharemarket is becoming increasingly popular thanks to the Mighty River share offer, with more people now believing the market will provide the biggest returns.
He says New Zealanders have been cautious about investing in shares, but that has picked up three points in the latest survey.
Mr Beale says there has been a lot of publicity around the Mighty River Power share offer which has helped with people's understanding of shares.
He says that's evident in more Mum and Dad investors becoming interested in shares, a lot more people opening share trading accounts and higher volumes of trade going through the market after Mighty River Power.
"But also the sharemarket's been having a stellar year. I think people have seen some good returns and also are looking for yield and looking for income that shares are certainly giving at the moment."
Mr Beale says if people are investing in shares it should be for the long term and they need to be aware of the risks associated with shares.