Where Can You Find Maximum Growth for Your Investments in 2024?

By: Mark_Adan

If we could all predict the way our investments will perform over the course of a year, I am pretty sure we would all be very wealthy by now. Unfortunately, we can’t, so instead, we rely on advice from blogs, fund managers, financial commentators, and analysts. And, for those of us who are a little more well versed in investing, we study the markets to give us the information to help us make what we believe to be an informed decision.

2023 though has been a year where the world has encountered such turmoil that it has been hard for many to have a firm grasp on where their money should be and where it could work at its best.

Global markets are, roughly, 15% up at present, which, given the conflicts, recessions and more, may seem surprising. The thing is, as Morningstar reported, these impressive returns were also hit by two severe falls in April and October. So, if you weren’t sticking with your investments when they fell, it’s unlikely you got the benefit when they rose to these improved 15% returns.

With inflation easing too, things are starting to become more attractive in a variety of markets but growth is largely variable across the globe. The same Morningstar report tells us that the US economy is growing steadily whilst in the Eurozone things are a little more unsettled.

So, going into 2024, where could your money be going to get the growth?

Growth stock funds

Growth stock funds are those that invest in companies where growth is expected to be above average. These ultimately come with more risk but present the potential of a higher reward making them an alluring proposition for many investors willing to gamble a bit more than the more conservative investor. Funds like these often hold interests in technology companies (AI firms being ones that are predicted to be at the forefront over coming years) and communications giants. Throughout 2023, many of these performed well and in US markets in particular, it is expected to remain this way.

Value stocks

Buying low and selling high is always a mantra an investor likes to live by, but it is not always possible. Value investing is a great way to see growth come from a source many may have deemed unlikely. Stocks like these are often overlooked but spotting those at a cheap price that is somewhat lower than their more expected value can reap rewards. Healthcare and consumer staples dipped in 2023 but are now expected to bounce back in 2024. It is often common to see stocks priced low rebound the year after due to changes in the market, changes in the company or changes in investor strategy.

Think of these investments as you sourcing undervalued stocks before everyone else catches up with you. You have bought them cheap and sold them high, they have bought them not quite as cheap and therefore got a return not quite as strong!

Large-cap stock funds

Large-cap is often a safe bet and allows you to make a calculated investment that is only medium on risk but can deliver a steady growth reward. Going into 2024, investing in established innovative companies, especially in the tech field could be where to go. Companies like Amazon, Tesla, Meta, and Google for example may cost more to invest in than others but throughout 2023 they delivered and 2024 shouldn’t be much different. When opting for a diversified portfolio, these large-caps are a great cornerstone to help deliver a stable return when other investments may be dipping as well as rising.

Dividend stock funds

Dividend funds can be that steady investment that helps keep things stable when others are not performing so great. The consistent income they generate, regardless of market trends, proves to be appealing to long-term investors looking for a consistent income stream. Typically, established companies that have strong financials are the ones you find being part of these funds and their stability and reliability in their industry and the markets can be a lure to those considering where to invest for the first time.

Key things to remember for investing in 2024

No matter where you choose to invest, you should seek professional advice before committing to an investment, and only invest when you feel confident in doing so. It is important to remember investments can go both up and down and at times you may find that your investment is worth less than the amount you initially invested. To mitigate this, it is advised you diversify your portfolio with investment trusts. Whilst higher risks do bring higher rewards, they stand to deliver bigger losses too. Spreading your investments across high, medium, and low risk allows you to cover some losses and potentially benefit from collective positive returns.

By Mark Adan

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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