In today’s dynamic world, we understand investors are actively seeking ways to unlock the full potential of their portfolios.
At BlackRock, we aim to facilitate the growth of your investment by strategically investing in promising businesses around the world.
From emerging markets brimming with potential to established economies in constant evolution, our resources and solutions will guide you in successfully navigating this evolving landscape.
Whether through global growth, selective growth equity funds or income investing, we are committed to equipping you with the tools and insights necessary for sound decisions. We want to ensure your path toward investment success is purposeful and rewarding.
Global equity markets present opportunities for robust growth, playing a pivotal role in advancing economic development by connecting capital with the most promising long-term ideas. The focus is identifying and targeting those companies aiming to outperform their peers.
Their success can lead to substantial returns.
Key areas currently propelling markets forward include healthcare, information technology and Renewable energy where we are witnessing genuine innovation with positive benefits for the individual, society and the global economy.
However, with high reward, comes high risk. The equity asset class can be deemed riskier than other asset classes such as bonds and cash because they can be more volatile, and investors must be prepared to tolerate short term losses. However, no asset class is entirely risk free. And as history has demonstrated there could be plenty of growth potential for long-term investors to target.
When considering the addition of growth equities to your portfolio, it’s essential to conduct comprehensive research and gain a deep understanding of your selected sectors.
Equally important to remember is that growth should constitute just one component of your investment strategy. Diversification can serve as a safety net, spreading risk and potentially mitigating market volatility.
Growth assets aim to provide significant opportunities and variety to your investment strategy. Continue your exploration on our growth hub below, where you can uncover exciting possibilities to enhance your portfolio’s growth potential.
Enhance your portfolio’s growth potential
There’s a world of dynamic investment opportunities. Global equity markets serve as a gateway for robust growth, connecting capital with the most promising long-term ideas. Our comprehensive insights are designed to enhance your portfolio’s growth potential.
5 fundamentals of a growth strategy in investing
From defining your unique goals to navigating the future of investing with BlackRock, discover expert insights that can amplify your wealth-building potential.
We simplify the essential information into five easy steps, guiding you towards a robust and effective approach for achieving long-term growth with your investment portfolio.
Frequently asked questions
Answers to some of the most commonly asked questions about growth-oriented investment.
-
Growth investments typically refer to assets or securities that have the potential to increase in price or value over the long term. They generate returns primarily through the appreciation of the asset’s price and are often associated with companies or sectors poised for expansion or increased income, outperforming the broader market. Investors in growth assets often adopt a longer-term perspective, emphasising factors such as innovation, market expansion and effective management.
-
Investment growth is typically measured by the increase in the value of an investment over a specific period of time. It’s expressed as a percentage that reflects the appreciation of the investment’s value. Generally, a higher percentage of return indicates better growth, however what is considered to be “good” can vary based on individual financial goals, risk tolerance and the performance benchmarks of comparable investments. A “good” investment growth can be said to align with the investor’s objectives, outperforming the rate of inflation to preserve and increase the real value of the investment.
-
Growth investing is a strategy where investors look for companies with strong potential for above-average earnings growth. The primary focus is on businesses that are expected to expand rapidly and generate higher than average revenue and profit growth. In contrast, with value investing investors look for stocks that are undervalued or trading below their intrinsic value. The goal here is to identify opportunities where the market has underestimated a company’s true worth, providing potential for future appreciation.
-
Begin the process with a careful consideration of your financial goals and risk tolerance. Research and educate yourself on the principles of growth investing by exploring BlackRock’s comprehensive resources and engaging with the content in this Hub. Our wealth of articles and expert perspectives are available to provide an informed foundation for your investment journey. Seeking professional advice can be valuable, especially for those navigating growth strategies for the first time.
-
The choice between investing for growth or income depends on your financial goals, risk tolerance and investment timeline. If you are aiming for long-term wealth accumulation and are willing to tolerate some risk, a growth-oriented approach may be suitable. Conversely, if you require regular payouts and a more stable income stream, an income-focused strategy may be preferable. Adopting a diversified approach and balancing growth and income objectives to meet specific objectives is always sensible, as is aligning your investment strategy with your individual financial circumstances and goals. You could also visit our Income and Growth Hub which contains articles, expert perspectives and more to help determine which investment route may feel best suited to you.
Growth investment trusts
Explore our BlackRock growth investment trusts. These managed growth funds have been crafted to uncover dynamic opportunities for growth in the world of investments.
Fund-specific risks
BlackRock Frontiers Investment Trust plc
Counterparty Risk, Currency Risk, Emerging Markets, Frontier Markets, Gearing Risk
BlackRock Greater Europe Investment Trust plc
Counterparty Risk, Currency Risk, Emerging Markets, Gearing Risk, Liquidity Risk
BlackRock Smaller Companies Trust plc
Counterparty Risk, Gearing Risk, Liquidity Risk, Smaller Company Investments
BlackRock Throgmorton Trust plc
Complex Derivative Strategies, Counterparty Risk, Financial Markets, Counterparties and Service Providers, Gearing Risk, Liquidity Risk
Description of Fund Risks
Complex Derivative Strategies
Derivatives may be used substantially for complex investment strategies. These include the creation of short positions where the Investment Manager artificially sells an investment it does not physically own.
Derivatives can also be used to generate exposure to investments greater than the net asset value of the fund / investment trust. Investment Managers refer to this practice as obtaining market leverage or gearing. As a result, a small positive or negative movement in stockmarkets will have a larger impact on the value of these derivatives than owning the physical investments. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds.
Counterparty Risk
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
Currency Risk
The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment.
Emerging Markets
Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets and failed/delayed delivery of securities or payments to the Fund.
Financial Markets, Counterparties and Service Providers
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
Frontier Markets
Frontier markets are generally more sensitive to economic and political conditions than developed and emerging markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets and failed/delayed delivery of securities or payments to the Fund. There may be larger fluctuations to the value of your investment and increased risk of losing your capital.
Gearing Risk
Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.
Liquidity Risk
The Fund's investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.
Smaller Company Investments
Shares in smaller companies typically trade in less volume and experience greater price variations than larger companies.
