Although I am a big fan of Australian small-cap shares, I don't believe that investors should go all-in on them.
As small-cap shares traditionally carry greater investment risks than their larger rivals, I think it would be prudent for investors to diversify their portfolio by investing in a good number of quality blue-chip shares as well.
Three blue-chips which I think are in the buy zone today are as follows:
Ramsay Health Care Limited (ASX: RHC)
I believe this private hospital operator is arguably one of the best buy and hold investment options on the ASX. Thanks to ageing populations across the world, an increase in chronic disease burden, and improvements in treatment and diagnostic methods, I believe Ramsay is positioned perfectly to provide investors with above average earnings growth for the next decade. Especially if its much-speculated expansion into the Chinese market becomes a reality at some point in the future.
ResMed Inc. (CHESS) (ASX: RMD)
With the sleep apnoea market tipped to grow substantially over the next decade and ResMed providing market-leading sleep treatment products, I think the company's bright prospects make it another great buy and hold investment option. ResMed recently announced a solid quarterly result which revealed a 9% jump in sales to US$496.6 million, excluding the contribution from its recently acquired Brightree business. I expect more of the same for the rest of the year, which could make it an opportune time to invest.
SEEK Limited (ASX: SEK)
Whilst its domestic growth may be slowing, I believe SEEK is in a great position for long-term growth thanks to its extensive international operations. The biggest driver of growth, in my opinion, will be its China-based business Zhaopin. In its recent results SEEK advised that the business had achieved total revenue growth of 23% in its first-half. As well as this the business also grew its market leadership even further.
