One of the keys to successful investing and wealth creation is portfolio diversification. As an example, it’s unlikely that an investor will make millions from the market by just holding blue-chip stocks. There needs to be some high-beta growth stocks in the portfolio. Similarly, exposure to global growth stocks is essential for wealth creation.

The reason is as follows – The United States and Europe are developed economies. These economies will grow at a relatively muted pace in the coming decade and beyond. On the other hand, countries in Asia, Southeast Asia, Latin America, and Africa are high-growth economies. Several sectors of the economy in these countries will grow at a robust pace. There will also be companies that will create immense value.

This column focuses on three potential multi-bagger global growth stocks to buy and hold. In my view, these stocks can be five-baggers in the next five years. Let’s discuss the reasons that make these stories attractive.

Miniso Group (MNSO)

Miniso Group (NYSE:MNSO) stock has skyrocketed by 133% year-to-date. However, in the recent past, the stock has witnessed some correction and consolidation. This is a good opportunity to accumulate before the next rally. It’s worth noting that the stock trades at an attractive forward price-earnings ratio of 23 and offers a dividend yield of 1.66%.

For Q1 2024, Miniso reported healthy revenue growth of 36.7% to $519.6 million. For the same period, adjusted EBITDA margin was 26.8%, higher by 290 basis points on a year-on-year basis. Key growth metrics are robust, and I expect strong numbers to be sustained in the coming quarters.

Another point to note is that Miniso increased the number of stores by 324 compared to the prior quarter. Store openings in China and overseas markets have been aggressive and are another factor that will support growth. With the holiday season, I expect growth acceleration and a positive impact on MNSO stock. Further, with a differentiated and dynamic set of product offerings, Miniso is a long-term value creator.

MakeMyTrip (MMYT)

MakeMyTrip (NASDAQ:MMYT) stock is another name I would not hesitate to hold for the next five years. MMYT stock has multi-bagger returns potential, considering the travel and tourism industry’s tailwinds in India. It’s worth noting that the stock has trended higher by 53% year-to-date, and I expect the positive momentum to be sustained.

As an overview, MakeMyTrip is India’s largest online travel booking company. The travel and tourism industry has gained renewed traction in the post-pandemic world. Further, India has a swelling middle class; by 2030, there will be 300 million middle-income households. Therefore, the addressable market is significant.

For Q2 2024, the Company reported revenue growth of 28.5% on a year-on-year basis to $168.7 million. For the same period, adjusted operating margin was 16.7%. Margins have been improving on the back of operating leverage. MMYT stock is positioned to create significant value as cash flows swell in the coming years.

Li Auto (LI)

Li Auto (NASDAQ:LI) is possibly the best-emerging name among Chinese electric vehicle stocks. LI stock has been surging higher, and bullish fundamental developments back the rally. Considering the growth trajectory and financial flexibility, I expect LI stock to be among the best multi-bagger global growth stocks.

For Q3 2023, Li Auto reported revenue growth of 271.6% on a year-on-year basis to $4.61 billion. Further, Li reported a healthy vehicle margin of 21.2%, superior to peers like Nio (NYSE:NIO) and XPeng (NYSE:XPEV).

For Q3, Li Auto also reported robust free cash flow of $1.8 billion. The company has also boosted its cash and equivalents to $12.13 billion, providing ample flexibility for aggressive retail expansion and investment in product development.

Recently, the company unveiled Li MEGA and the delivery of this model will commence in February 2024. This is another factor that’s likely to support deliveries growth acceleration in the coming quarters.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.