Why invest in technology funds?

technology funds

✔️ Information reviewed and updated in September 2024 by Pedro Martínez González

There is no doubt that technology investment funds are one of the best, mainly because of their great growth potential, due to the innovation and disruption that comes from technology. This market creates opportunities worldwide and despite being sometimes volatile, they are an excellent investment option. That is why today we tell you which are the most profitable technological funds.

Keys to choose the best technology funds

  Diversification

One of the reasons why the top technology mutual funds are extremely profitable is that they allow you to diversify your portfolio. Tech funds cover a wide range of companies, no longer just focusing on commodities or bonds from other types of companies.

Active or passive management

Before going on to talk about the best investment funds in technology companies, it is also worth highlighting one of its best advantages, such as active or passive management.

Like other types of investments, it depends on your investment style, the time that you will give each one the growth potential that it will have, but best of all, you can carry out passive management, obtaining profits over time, Or, actively managing your assets, so you can buy and sell as soon as technology investment funds rise.

Historical return and risk

Tech companies are a disruptive change agent in virtually every sphere of society, which is why the best-performing tech funds are often those companies that leap into the future.

Although we cannot bet 100% on what will come from the hand of technology, if you can make a line of historical profitability, to analyze if these investment funds are suitable for you.

Fees and expenses

One of the reasons why you should choose the best way to invest is to analyze the commissions and expenses, based on a comparison of technological investment funds, hand in hand with experts and professionals who will help you make a comprehensive analysis, evaluating the potential of the most promising companies.

Although this information can generate commissions and platform expenses, the profit potential will be an excellent investment.

Top 10 best technology investment funds for 2023

Now that you know the advantages of investing in an investment fund of this type, we will talk about our ranking of technology funds.

JP MORGAN FUNDS – US TECHNOLOGY FUND

It invests primarily in US technology companies such as the media and telecommunications.

 ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE

His main focus is on the evolution of artificial intelligence, also investing in emerging markets excluding Hong Kong and Taiwan.

AB SICAV I-INTERNATIONAL TECH. PORTFOLIO

This fund is in our top technology investment funds because its main expertise is in the science and technology sector.

FRANKLIN TECHNOLOGY FUND

You will be able to invest in technology application and software development companies.

THREADNEEDLE (LUX) – GLOBAL TECHNOLOGY

Its main focus is companies related to the technology industry from around the world.

FIDELITY FUNDS – GLOBAL TECHNOLOGY

This is one of the outstanding technology investment funds mainly because you can invest your long-term capital in companies focused on technological improvements, in terms of processes and services.

T.ROWE GLOBAL TECHNOLOGY EQUITY FUND

You will be able to increase your long-term investments in this fund specialized in the technology sector.

DWS TECHNOLOGY TYPE O

This is one of the best technology funds to invest mainly due to its diversification in companies around the world, related to information, biotechnology and semiconductors.

BNP PARIBAS DISRUPTIVE TECH. PRIVILEGE

You will be able to invest in companies that operate in the technology sector.

AXA WORLD FUNDS – FRAMLINGTON DIGITAL ECONOMY

This investment fund focuses on North American companies in the technology sector, especially recommended for the European market, since its main currency is the euro.

How to invest in technology funds

To invest in technology funds, it is very important that you carefully analyze the comparison of technology investment funds, especially historically evaluating the profit potential that you will have, because these types of companies are usually very volatile.

Investment accounts and online platforms

There are various online platforms which will allow you to operate in investment funds, but we recommend using multi Brokers, especially so that you can carry all your investments in one place.

Where to find information about funds

Finding information about the best-performing technology funds is essential for your investments and although it can be relatively difficult to find adequate information, most of these companies are public, so you can make your own evaluations based on the earnings each has. one of them.

You can also use investment books and, of course, the real-time information provided by your trusted Broker.

Tax considerations

If you decide to invest in mutual funds, you should take into account that each of the countries has different tax laws, but most of them charge taxes directly from capital gains.

Tips for investing in technology funds

Now that you know which are the best investment funds in technology companies, I will give you some advice if you decide to invest in this type of fund.

Long-term investment

You must have the patience that every smart investor has. Although investments in the technology sector can be very volatile, the real gains will be seen in the long term.

In addition, to avoid having losses, you should think about having long-term investment gains, rather than being carried away by fashions.

Tailor your portfolio to your risk profile

As an investor you always have to take into account the level of risk that you are able to face. Above all, you must remain calm when we are in a bear market.

Review your investments periodically

Access to data and information in real time is the fundamental basis for making good decisions, so I recommend choosing a trusted Broker, which provides you with adequate information and you can review it constantly.

FAQs

What is the Technology Fund?

A technological fund is one focused on this sector, focusing mainly on technological areas, to invest in emerging and even consolidated companies.

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About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

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