For many, or most, of us, it's smart to aim for average returns, because they're rather powerful and they can be simple to achieve -- by socking money away in one or more low-fee, broad-market index funds such as one that tracks the S&P 500.
If you're looking for above-average returns, you might want to devote a portion of your portfolio to growth stocks. Here's a look at several promising ones.
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Image source: Getty Images.
First, though, let's set the scene. Know that over many decades, the stock market has averaged annual returns of close to 10%. But over your particular investing period, it might average more or less. After all, at the time of this writing, some were worrying about an impending recession. If a recession occurs, remember that they have happened many times and the market has always recovered.
So here's how your money might grow over time at various rates:
Investing $12,000 Annually For: |
Growing at 8% Annually |
Growing at 10% Annually |
Growing at 12% Annually |
---|---|---|---|
5 years |
$76,032 |
$80,587 |
$85,382 |
10 years |
$187,746 |
$210,374 |
$235,855 |
15 years |
$351,892 |
$419,397 |
$501,039 |
20 years |
$593,076 |
$756,030 |
$968,385 |
25 years |
$947,452 |
$1,298,181 |
$1,792,007 |
30 years |
$1,468,150 |
$2,171,321 |
$3,243,511 |
35 years |
$2,233,226 |
$3,577,522 |
$5,801,557 |
40 years |
$3,357,372 |
$5,842,222 |
$10,309,707 |
Data source: author's calculations.
Growth stocks can help you attain faster growth rates, but they're not sure things. They can be overvalued and some will flame out. Still, here are some promising ones. (I'll offer a few details about each below.)
Stock |
1-Year Avg. Annual Return |
3-Year Avg. Annual Return |
5-Year Avg. Annual Return |
---|---|---|---|
Nvidia (NASDAQ: NVDA) |
21.6% |
74.1% |
76.1% |
Accenture (NYSE: ACN) |
(10.1%) |
5.4% |
15.3% |
SoFi Technologies (NASDAQ: SOFI) |
68.5% |
9.4% |
N/A |
Meta Platforms (NASDAQ: META) |
22.5% |
49.6% |
28.2 |
Vanguard Information Technology ETF (VGT) (NYSEMKT: VGT) |
9.3% |
16.2% |
20.5% |
Data source: Morningstar.com, as of March 7, 2025.
Whether you invest in any of the candidates above, in some other powerfully performing ETFs, or in a simple but very effective S&P 500 index fund, do be sure to be saving and investing for your future.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Selena Maranjian has positions in Apple, Meta Platforms, Microsoft, Nvidia, and SoFi Technologies. The Motley Fool has positions in and recommends Accenture Plc, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.