The tech sector, which has been avoided by fund firms, may promise a strong rebound as tech funds have been the big winner so far this year and many tech firms are reporting robust first-quarter earnings, Associated Press reports.
The news report cites data from fund research firm, Lipper, which found technology funds have returned of 6.71% so far this year. Growth funds, which typically have a heavy concentration of tech stocks, are also doing well. Large-cap growth funds have a positive return of 4.02%, multi-cap growth funds are up 4.05%, and mid-cap growth funds have earned investors 2.07% year to date through the end of March, according to Lipper.
By contrast, safer fund havens, such as value-oriented funds that focus on companies that offer the stability of dividend payments, have pulled back this year. Small-cap value funds, for example, are down 1.47%.
"Should investors be excited?" asked Scott Bleier, president of Hybridinvestors.com, a research advisory service. "They should be excited that the worst is behind us and the market has absorbed an unusually large amount of bad news: the war, the crash in tech, the tech depression," he told Associated Press.
But he and other analysts warn many tech firms may continue to perform poorly.
"I think there are some companies that are survivors and winners. But whether you go out and buy a whole (tech) fund, it might be too soon," said Don Cassidy, senior research analyst at Lipper.
The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.