In today’s dynamic world, we understand investors are actively seeking ways to unlock the full potential of their portfolios.
From emerging markets brimming with potential, to ground-breaking innovation in developed economies, the world has a wealth of growth opportunities to explore.
At BlackRock, our active fund managers and experienced analyst teams strive to uncover the most exciting growth options across the globe.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Investment for growth: Opportunities
5 fundamentals of a growth strategy in investing
From defining your unique goals to navigating global financial markets with BlackRock, discover expert insights that can amplify your wealth-building potential.
We simplify the essential information into five easy steps, giving you the tools to achieve long-term growth with your investment portfolio.
Where to find growth opportunities
Global economic growth has been steady at just over 3% in recent years.1 But every year there will be pockets of the world economy that are growing faster than that. For example, emerging and developing economies are projected to grow at 4.2% for 2026, compared to 1.8% for advanced economies.1 Within developed markets, new sectors are emerging all the time, as technology, demographics and innovation disrupt existing industries.
Picking the right fund for growth
Growth can be your secret weapon in saving for the long-term, so it is worth picking your fund manager with care. A good fund manager should be able to harness opportunities that emerge from the global economy over time. Witness the rapid growth of technology, the economic emergence of Indonesia or Brazil, or the evolution of healthcare. By targeting areas of growth, investors can align with the most innovative and creative areas of an economy.
Growth and the effect of compounding
Investing for growth could mean that every pound you save works harder. The effect of compounding becomes more powerful the longer you save. Over a year or two, a percent or two extra on your returns may not make a meaningful difference, but over 20 years, the effect can be profound. A £10,000 investment growing at 7% rather than 5% will be worth an additional £13,200 over 20 years.2
Targeting growth in the global economy
Aligning your investments with pockets of growth in the global economy can also help you deal with inflation. While investors tend to see risk in terms of losing money, another key risk is that your savings don’t keep pace with inflation, and therefore lose purchasing power in real terms. Stock markets as a whole have a better track record of outpacing inflation than either cash savings accounts or fixed income, but targeting growth segments of the global economy may provide an even greater safety net.3
Risk and reward
Growth investing should work over time because of the relationship between risk and return. Equities are more risky than other asset classes such as bonds and cash, because capital values can be more volatile, and investors can experience short-term losses. They are rewarded for taking that risk with potentially higher returns. History suggests that taking risk has paid off for investors over the long term2.
Growth investment options
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The higher rates of growth that can be achieved by emerging economies creates a strong backdrop for companies to grow, which in turn can drive higher stock market returns. The journey can be volatile, but economies tend to follow a well-trodden path towards prosperity. As well as more mature emerging markets such as China, India, South Korea and Brazil, there are also opportunities in ‘frontier markets’ that show exciting growth potential.
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Asia and Latin America may be investors’ first thought when looking for emerging market exposure, but growth opportunities can be found closer to home as well. For example, Europe is a continent that can often surprise for its innovation and dynamism.
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Another source of premium returns that has been evidenced in a number of academic studies over the years, is the so-called ‘size effect’, where smaller companies outperform larger companies.4 While this is not predictable over any single year, over the very long-term, smaller companies may have an additional runway of growth.
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Active managers often focus on under-researched, inefficient parts of the market. The lack of research coverage in less explored parts of the market means that attractive opportunities can be overlooked. Careful stock pickers work hard to unearth these “hidden gems” and build portfolios with long-term growth potential.
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There are new growth themes emerging all the time, that help reshape economies and tap into vast new markets. AI, for example, is expected to grow to a near-$5 trillion market by 2033 globally, according to the UN5. The middle class in emerging markets, for example, is set to double over the next decade, according to Oxford Economics6. There are rapid developments in healthcare, in fintech, or in cybersecurity.
Avoiding overvaluation
While investing in growth areas has clear advantages, it does come with some pitfalls. If investors catch on to a specific area of growth, there can be over-exuberance. This was evident during the technology boom of the late 1990s, but smaller-scale bubbles occur frequently in stock market history. Often these companies continue to grow rapidly. The problem is that the starting valuation is too high. For investors, the key is not to overpay for high growth and to target areas where growth is undervalued: if a company’s growth is well-understood by the market, it may already be in the price. At BlackRock, our analyst teams are on the ground across the world, aiming to uncover these sources of undiscovered growth.
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.
1 IMF - World Economic Outlook - January 2026
2 MSCI - MSCI World index - 30 January 2026
3 IG Index - How does inflation affect the stock market? - 7 April 2025
4 Journal of Financial Economics - The relationship between return and market value of common stocks - March 1981
5 UN Trade & Development - AI market projected to hit $4.8 trillion by 2033, emerging as dominant frontier technology - 7 April 2025
6 Oxford Economics - Rising EM middle class will increase demand for risky assets – 27 May 2025
Risk Warnings
Investors should refer to the prospectus or offering documentation for the funds full list of risks.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
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 Companies
BlackRock Throgmorton Trust plc
Complex Derivative Strategies, Counterparty Risk, 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.
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 Companies
Shares in smaller companies typically trade in less volume and experience greater price variations than larger companies.
