 |
The Citi Advantage |
Sign On
Does growth investing work?
15 October 2025 | 3 min read
Key Takeaways at a Glance
- Growth investing targets companies with strong earnings potential or innovation pipelines.
- It is ideal for investors seeking long-term capital appreciation over regular income.
- Volatility and valuation risk are key considerations for growth investors.
- Citi clients can access growth-focused strategies across global and regional markets.
Introduction
For High-Net-Worth Investors, allocating capital isn’t just about managing today’s risk—it’s about positioning for tomorrow’s growth. Growth investing, favoured by those seeking capital appreciation, is especially relevant in today’s innovation-driven, globally connected economy.
This article sets the foundation for growth investing—what it is, how it differs from other strategies, and who it’s right for. Future articles will explore sector-specific growth opportunities, how to evaluate growth vs. momentum investing, and how to balance growth with defensive strategies.
What is growth investing, and how does it work?
Growth investing targets companies expected to grow faster than the market average. These are typically firms reinvesting earnings to scale operations, enter new markets, or innovate aggressively.
Unlike income investing, which prioritises dividends, growth strategies may involve companies with low or no payouts—but with high future earnings potential. Think global tech, renewable energy, or disruptive healthcare.
Who is growth investing best suited for?
This strategy appeals to:
- Investors with a longer time horizon.
- Those comfortable with volatility in exchange for upside potential.
- Individuals focused on capital appreciation, not immediate income.
- Investors who are actively tracking market shifts and innovation trends.
Our global reach opens access to growth themes, emerging markets, and niche opportunities, supported by insights from our Client Advisors.
What are the advantages of growth investing?
| Higher upside | If earnings projections are met or exceeded |
| Exposure to innovation | Stay ahead of market trends |
| Global access | Growth isn’t limited to the US; opportunities exist in Asia, Europe, and emerging economies |
| Long-term compounding | Beneficial when combined with RSPs (Regular Savings Plans) or reinvestment plans |
What should growth-focused investors watch out for?
| Valuation risk | Growth stocks can be expensive relative to current earnings |
| Market cycles | These stocks often underperform during downturns or rate hikes |
| Momentum traps | Sometimes confused with growth investing, momentum-driven stocks may not always have strong fundamentals |
This is where understanding growth vs. momentum investing becomes essential. Growth is based on fundamentals; momentum is often price-driven.
Does growth investing belong in your portfolio?
Growth investing isn't a silver bullet—but as part of a well-diversified strategy, it can deliver meaningful long-term returns.
- Considering a growth strategy? We’ll help you match it to your goals.
- Not banking with us yet?
Explore Growth Investing
We can help you explore high-growth opportunities and ensure they fit your broader wealth plan.
Speak to your Client Advisor now
Begin your relationship with Citi
We have the expertise to help you explore growth investment opportunities across sectors and geographies.
This article is for general information only and is not intended to be a forecast of future events nor a guarantee of future results and should not be relied upon as financial advice. All views and opinions are as of the date hereof, and are subject to change based on market and other conditions without notice. The article has no regard to the specific objectives, financial situation and particular needs of any specific person. It is neither an offer nor a solicitation to purchase, nor endorsement or recommendation of any products or services mentioned therein, and the products or services mentioned may or may not be offered by Citibank Singapore Limited, its related entities and their respective directors, agents and employees (together "Citigroup").
This article and its contents do not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution, offer or solicitation is not authorised or to any person to whom it is unlawful to distribute such information or make any offer or solicitation. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Citigroup is under no duty to update this article and shall not be liable for any complaint, suit, action, claim, expense, loss or damages directly or indirectly arising out of or in connection with any person’s reliance on, or acting upon, or use of, any contents on this article. The article is subject to amendment without notice. Investment Products are (i) not insured by any government agency; (ii) not a deposit or other obligation of, or guaranteed by, the depository institution; and (iii) subject to investment risks, including possible loss of the principal amount invested. The information contained herein is not intended to be tax or legal advice, or an exhaustive discussion of the strategies or concepts mentioned herein. Please seek advice from your tax, legal or financial adviser as appropriate about the contents discussed herein or before investing in any investment products. Should you choose not to seek such advice, you should carefully consider the risks associated with any investments and make a determination based upon your own particular circumstances and assess whether such investment product is suitable for you.
Download the Citi Mobile® App
Citibank Singapore Ltd Co.Reg. No. 200309485K
Copyright © 2025 Citigroup Inc.