UK small caps remain relatively attractive


    In the past, small companies have suffered from a perception that they are inherently higher risk with poorer standards of governance and shareholder rights. While investors in smaller companies will have higher levels of exposure to particular consumers and products, recent events have shown that mega cap share prices are arguably becoming increasingly volatile themselves.

    Evidence suggests that the smaller end of the UK stockmarket is well positioned to continue its growth into next year.

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    Toby Belsom and Robin West are UK equities fund managers at Aviva Investors


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