If You Want to Invest in a Tech Fund…

Article Excerpt

Many tech stocks have moved down this year. The decline is largely due to investor uncertainty that corporations will spend heavily this year on new technology. Many companies are instead focusing on consolidating their existing technologies and cutting costs. On the other hand, spending by consumers on new technology remains steady. Despite lower stock prices, it would be a risky mistake to load up on tech stocks in your portfolio, since a major turnaround could take years to arrive. You also need to avoid junior techs that may have more conceptual than financial appeal. Many such stocks can make great scientific progress without making much if any money for investors. If you want to invest in tech funds, limit your investment to modest quantities. And these funds should only make up a portion of the manufacturing sector holdings in your portfolio. Above all, invest only in funds, like these two, that focus on established businesses rather than start-ups. TD SCIENCE & TECHNOLOGY FUND…

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