If it's a trend, it's going to be slow moving.
Too many tech funds were brought out in the 1990's and many of them were ill-conceived as long-term investments.
If you're thinking about buying an Internet fund, you have several options. But people are waking up to the risks of the sector. All of a sudden you've got a smaller group of people who want to take the plunge.
Any time you see a substantial deviation in returns with a fund compared to its category, it's usually because it's taken a substantial risk to get there. These funds aren't less risky now. It's just that the stocks they've invested in have finally started to come back.
He has long stayed out of energy, and it's been the leading category. That really held the fund back, but more recently energy hasn't been a great place to be.
Investors are more aware of the risks associated with these offerings. We'll see more consolidation of technology funds and that's a healthy thing.
Investors should never go into a tech fund expecting stability.
You really have to be careful with taking the rear view approach with tech. If you pile on to what's been working, you could be in for a big shock.
A lot of the funds in this rally are really some of the more speculative, riskier ones around and investors should be careful about chasing their performance.
A lot of the companies these funds have invested in have run pretty hard. Chasing performance here is probably a recipe for disaster.