Global Investor Study
Hongkongers’ risk appetite remains high
Hong Kong investors are willing to take on more risk compared to their global and Asia peers, the Schroders Global Investor Study 2018 revealed.
The study, which surveyed more than 22,000 investors in 30 markets, including 550 Hong Kong investors, showed that Hong Kong investors allocate 69% of their investment portfolio to high- and medium-risk investments, which is much higher compared to their global (56%) and Asia (57%) counterparts.
|% of investment portfolio allocated in high risk||29%||22%||19%|
|% of investment portfolio allocated in medium risk||40%||35%||37%|
|% of investment portfolio allocated in low risk||31%||43%||44%|
Using multi-asset strategies to diversify risks and returns
While Hong Kong investors are willing to take on more risk compared to their global and Asia peers, it appears they are cognisant of the importance of portfolio diversification.
The study showed that a majority (73%) of Hong Kong investors believe their investment portfolios are diversified enough, and that over four-fifths (82%) of all Hong Kong respondents have invested more in multi-asset investment strategies compared with five years ago.
As asset classes tend to behave differently in different economic cycles, Schroders believes that by adopting a diversified and proactive asset allocation approach, investors can diversify risks and generate sustainable income and attractive overall returns.
Embrace uncertainty and seize opportunities
Hong Kong investors look for value and pay attention to fundamentals when selecting assets. When global stock markets go down, two-fifths (40%) of Hong Kong investors said they would invest more in stock markets or bonds, compared to global (31%) and Asia (39%), according to the Schroders study. This shows that Hong Kong investors can better embrace uncertainty and seize opportunities by keeping their finger on the pulse of market movements.
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