The Hang Seng Composite Small and Mid-Cap Index did not post the best of performance this year. From January 2018 to end-September, the index fell more than 15 percent, underperforming the benchmark Hang Seng Index or the HSI. According to UOBKH, the underperformance is attributable to the weaker trading liquidity, corporate governance risk and less defensive nature of small and mid-caps compared to the blue chips.
Going Defensive
In light of the adverse macro environment, UOBKH recommends that investors take a back seat with the aggressive strategy of pursuing growth for small and mid-caps. Instead, investors should look out for resilient small and mid-caps with good risk-reward profiles. There are three strategies that UOBKH recommends which will allow investors to build a resilient portfolio in the current investment climate. catch here more - SharesInvestmentNews.blogspot .com
Submitted October 14, 2018 at 10:05AM by Metootoday https://ift.tt/2ygiN1R
