Why invest in technology funds?

✔️ Information reviewed and updated in May 2024 by Eduardo López

Investing in the technology sector is extremely attractive mainly due to its great growth potential and diversification opportunities that it allows. Furthermore, the innovation factor is key, giving great profit potential. That is why today we tell you which are the best technological investment funds.

Keys to choose the best technology funds

Before talking about the most profitable technology funds, we are going to review the qualities that make this sector extremely attractive.

 Diversification

The technology sector has come to innovate in every aspect of our lives and of course the economy is no exception. Being part of this sector you will be able to diversify your portfolio, thanks to the wide variety of technology companies available.

Active or passive management

Another very important reason why it is a great idea to invest in technology funds is that you can manage them actively or passively.

If your style as an investor is closer to the long term, you can leave your investments practically without making any movements, but you can also manage them actively by buying and selling as soon as you detect market trends.

Historical return and risk

Most of the main technology investment funds seek to invest in truly established companies, so you can evaluate the historical profitability and the level of risk faced by each of the funds.

Fees and expenses

An investment fund focused on technology works like any other, since in addition to managing and administering your funds, the fund's group of experts conduct research on the sector, so you are generally charged a commission in addition to the money you invest in said fund. background.

Top 10 best technology investment funds for 2023

Below I will tell you our ranking of technology funds

AXA WORLD FUNDS – FRAMLINGTON DIGITAL ECONOMY

The first in our top technology investment funds is focused mainly on guaranteeing safe investments, in the US market and also globally.

BNP PARIBAS DISRUPTIVE TECH. PRIVILEGE

This investment fund focuses on the technology sector, actively managing and systematically reinvesting profits

DWS TECHNOLOGY TYPE O

The next of our featured technology investment funds specializes in emerging technology companies in the biotechnology, pharmaceutical, semiconductor, information technology and communications sectors.

T.ROWE GLOBAL TECHNOLOGY EQUITY FUND

This investment fund is qualified to evaluate companies that can provide better long-term investment benefits.

FIDELITY FUNDS – GLOBAL TECHNOLOGY

We continue our count of the best technology funds to invest with this fund specialized in long-term capital growth, investing in technology companies specialized in the development of products, processes or services.

THREADNEEDLE (LUX) – GLOBAL TECHNOLOGY

This investment fund specializes in global companies related to the technology industry.

FRANKLIN TECHNOLOGY FUND

We continue our comparison of technological investment funds by talking about this fund, whose main objective is in the development industry and applied technology.

AB SICAV I-INTERNATIONAL TECH. PORTFOLIO

This fund focuses mainly on international companies in the science and technology sector, whose main focus is seeking US investors.

ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE

This company is focused on emerging markets, which have great potential for long-term growth, especially due to its expertise in the evolution of artificial intelligence.

JP MORGAN FUNDS – US TECHNOLOGY FUND

We will conclude our count of the best performing technology funds with the giant par excellence in the technological variant of JP Morgan, dominating the communication technology and telecommunications sector.

How to invest in technology funds

Investing in technology funds is not very different from investing in any type of fund, since you must be based on the basic premises of investment and extensive knowledge of the sector.

In this sense, information is very important, as is choosing a perfect Broker that provides you with the necessary information for your investments.

Investment accounts and online platforms

There are a large number of investment accounts and online platforms that you can use to invest in the technology sector. These platforms allow you to make your investments and access not only the technological field, but also the wide range of fund options.

Where to find information about funds

To find information about investment funds you must constantly inform yourself about global financial news. Since most of them are public companies, their information is within reach, you just have to put in the appropriate time to investigate.

Likewise, your trusted Broker can provide you with a summary of financial news in real time.

Tax considerations

The tax situations in question of technological investment funds are subject to each country and national tax regulations. However, in most countries there are regulations for paying tax on capital gains, so they also include investments in funds.

Tips for investing in technology funds

Now that we have done an analysis through our count of the best investment funds in technology companies, I will give you some key tips so that you can invest appropriately in the technology sector.

Long-term investment

One of the serious risks of technological investment funds is their wide volatility, since prices can rise or fall overnight.

In this sense, you should always think about long-term investments, to reduce risk and above all, think about a sustainable profit over time.

Adapt your portfolio to your risk profile

Your technology investment fund portfolio should be subject to the type of investor you are. Only you know the level of risk you are willing to take with each operation, so it is very important in this case to do an analysis of the type of fund that suits the level of risk you are willing to take.

Review your investments periodically

Information is key and investment funds will always show you the returns that each of your operations and capital income has had. Review how your capital is being managed periodically, to see which of the sectors in which you invest is much more profitable.

Frequent questions:

What is the Technology Fund?

A technology investment fund is one focused primarily on a fund that specializes in technology sectors, using criteria to evaluate how much a company can grow over time.

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Eduardo Lopez

Editor and Copywriter

I am Eduardo López Martínez, I was born in Madrid, Spain and I am 48 years old. I am a journalist and I am part of the Brokersdeforexconfiables.com team. Do you want to know a little more about me? I invite you to read my biography.

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