Initially of 2024, I put just a few thousand kilos into Scottish Mortgage Funding Belief (LSE: SMT). That was a superb transfer – as I write this shortly earlier than Christmas, the Scottish Mortgage share price is up 17% yr up to now versus a 4% achieve for the FTSE 100 index (I’m not factoring in dividends right here).

Can this growth-focused funding belief beat the Footsie once more in 2025? I believe so. Right here’s why.

Scorching themes

The rationale Scottish Mortgage shares have completed nicely in 2024 is that the funding belief supplies publicity to corporations which might be in progress industries. I’m speaking about industries akin to synthetic intelligence (AI), cloud computing, on-line purchasing, house exploration, and pc chips.

I absolutely count on these industries to proceed rising subsequent yr (which ought to be good for Scottish Mortgage). Usually, these industries are projected to develop by 10% or extra per yr up to 2030.

One business I’m significantly enthusiastic about is AI. Proper now, we’re seeing the second section of this expertise, the place corporations are rolling out AI options which might be enhancing their merchandise and driving income progress.

Some corporations within the Scottish Mortgage portfolio that would do nicely on this section embody Amazon, Shopify, and Meta Platforms (that are all within the prime 10 holdings). All of those companies are very lively within the AI house and are introducing options throughout their product portfolios.

Progress shares

Now, many shares within the portfolio have completed nicely this yr. For instance, Nvidia, which is presently a prime 10 holding, is up 170% yr up to now.

I see loads of shares Scottish Mortgage holds with potential for good points in 2025 as nicely. One is Amazon. It has unperformed the opposite Massive Tech shares lately and is now enjoying catch-up. With earnings rising sharply, I believe it might do nicely subsequent yr though there are not any ensures, after all.

One other inventory that would do nicely subsequent yr is ASML. It specialises in subtle tools wanted to fabricate AI chips. There may be some uncertainty right here as a result of export restrictions. But when orders are sturdy, I believe the inventory might do nicely.

General, I see numerous shares with potential for 2025. In the event that they do nicely, the Scottish Mortgage share price ought to rise.

Something can occur

After all, within the inventory market something can occur within the quick time period. So Scottish Mortgage shares could not outperform the FTSE 100.

One issue that would trigger weak efficiency is a few profit-taking in tech shares. They’ve had an ideal run over the past two years so they may see a pullback.

One other is rates of interest. In the event that they had been to maneuver increased, unlisted firm valuations might take successful.

Alternatively, the FTSE 100 might have a purple patch. It hasn’t completed a lot over the past 5 years, so it might expertise a pop and beat the funding belief.

My cash is on the Scottish Mortgage Funding Belief to beat the Footsie although. I’m anticipating one other yr of nice returns.