7 JANUARY 2026
Emerging Markets Insights: Adapting to achieve growth
The probability of strong earnings and growth-friendly policies should make emerging markets attractive to investors in 2026, in the view of Templeton Global Investments.
As Christmas approaches, many families are thinking about how to give a gift that could genuinely support a child or grandchild’s future. With the rising cost of university, housing and other first steps into adulthood, it’s increasingly clear that the financial demands young people face are rising.
A quick reality check
- £61,090 – average deposit for a first home
- £311,034 – typical price paid by a first-time buyer
- £53,000 – average student loan debt on graduation
With costs like these ahead of them, even a small investment started today could become a significant source of support when those milestones eventually arrive.
Children also have one advantage adults rarely do: time – time for small amounts to grow, and time for long-term investing to work on their behalf.
Why cash in the bank isn’t enough – and why compounding matters
Keeping money in cash is useful in the short term, but over many years inflation quietly reduces what it can buy. For goals that are still a decade or more away, growth matters more.
That’s where compounding comes in – the effect of growth building on growth over long periods. When an investment has many years to run, even small, regular contributions can build into something meaningful by the time a child reaches adulthood.
This is why it can pay to look beyond cash to investments with room to grow – and emerging markets offer some of the strongest growth potential.
Investing for the world they’ll grow into
Children won’t build their futures in the global economy of the past. They’ll be adults in a world where emerging markets are expected to drive nearly three-quarters of global growth, powered by rising incomes, expanding middle classes and rapid innovation.
Countries such as India, South Korea, Indonesia, and Brazil are home to many of the companies likely to shape the next economic cycle. For long-term investors – particularly those investing on behalf of children – these regions offer exposure to the growth of tomorrow.
TEMIT: a simple way to access that growth
The Templeton Emerging Markets Investment Trust (TEMIT) provides a straightforward, professionally managed way to invest in these fast-growing economies. Its portfolio focuses on high-quality businesses with strong financials and the potential to compound value over time – a natural fit for a child’s long investment horizon.
The chart below shows how TEMIT has delivered stronger long-term returns than both UK equities and cash savings – underlining why relying solely on cash may not be enough for goals many years away.
Source: Morningstar Direct
Past performance is not a guide to future performance. Find out more about TEMIT’s performance at Templeton Emerging Markets Investment Trust - TEMIT.
What compounding can look like with TEMIT
TEMIT’s long-term record helps show how powerful compounding can be:
- A £5,000 lump sum invested in TEMIT 18 years ago would have grown to £35,909.
- £100 a month over the same period would have grown to £53,012.
These examples show how long-term investing can build into support that really matters by the time those big life moments arrive.
A gift that grows with them
TEMIT can be held through most investment platforms or within a Junior ISA, allowing any potential growth to build free from UK income and capital gains tax.
This Christmas, a small investment could give the children in your life a meaningful headstart towards life’s biggest milestones – a gift that grows with them, long after the decorations are put away.
How to Invest with Us
Shares in TEMIT qualify as an investment which can be held through an ISA. TEMIT is available through a stocks and shares ISA from a number of different companies. Your financial adviser will be able to give you full details of the options available to you.
