Cash ISAs continue to be a popular financial product. And with interest rates of around 5% on offer today, I can understand why. Personally though, I think there are better ways to build my wealth. Take Scottish Mortgage (LSE: SMT) shares for example – they’re already up about 11% this year.

A growth-focused investment trust

Scottish Mortgage is an investment trust with a growth focus. Designed for long-term investors with a higher risk tolerance (like myself), it offers exposure to companies operating in high-growth industries such as artificial intelligence (AI), cloud computing, self-driving vehicles, computer chips, space technology, and online shopping.

Given that it’s an investment trust (and not a regular investment fund), it trades on the stock market like company shares do. As I write this, its share price is 1,060p.

Strong gains

The thing is, at the start of the year, the share price was 955p. So already, the shares are up 11% for the year and we’re not even through January yet.

And this strength comes after a great 2024. Last year, the share price rose from 808p to 955p – a gain of 18%.

Personally, I’m loving the recent share price strength here. I have held this investment trust in my SIPP (pension) for many years now but at the start of last year, I put another £4k or so into it. That capital is now up more than 30% (i.e. a gain of £1,200+). Not bad in a little over a year.

I remain bullish

Looking ahead, I remain very bullish on Scottish Mortgage shares (and believe they are worth considering as a long-term investment). There are several reasons why.

First, industries like AI and cloud computing aren’t likely to stop growing any time soon. Realistically, these industries are still in their infancy today.

Zooming in on the AI industry, it is forecast to grow by around 30-40% per year between now and 2030 (AI is the fastest-growing technology in history). So, there could be huge growth ahead for companies operating in it.

Second, the trust is invested in some amazing businesses. At the end of 2024, top holdings included Amazon, Nvidia, Taiwan Semiconductor Manufacturing Company (TSMC), and Mercadolibre.

All of these companies have great long-term track records and substantial growth potential looking ahead. All are set to be beneficiaries of the technology revolution we are experiencing today.

Third, the trust offers exposure to some exciting unlisted businesses. An example here is SpaceX – one of the leading players in the fast-growing space industry.

Not for everybody

Now, I’ll point out that this investment trust isn’t suitable for everybody. As I said earlier, it’s designed for those who are comfortable taking on some risk.

History shows that its share price can be volatile at times. We could potentially see a wobble in 2025, especially if there are concerns about the strength of the economy or corporate spending on technology.

Taking a five-year view, however, I’m excited about the investment potential here. I believe this trust will generate significantly higher returns than savings products such as Cash ISAs in the years ahead.