Technology Stocks & Shares ISAs
Technology embraces a wide range of industries including:
Computing technologies - As well as the development of better laptops and desktops there is also the software development that continues at pace. Companies such as Microsoft and Dell are constantly innovating as are the chip processor manufacturers such as Intel and AMD.
Internet technologies - In a fairly short period of time the internet has become a main driver for commercial activity. Players such as Google and Amazon have changed peoples buying behaviour.
Artificial intelligence - AI technology incorporating deep and machine learning. Whilst still at an early level an example is self drive car technology.
Blockchain technology - The driver behind virtual currencies such as Bitcoin. Effectively blockchain is digital information (the "block") stored in a public database ("the chain"). As well as forming the bedrock of cryptocurrencies where there is no need for a central authority, blockchain is being used by the healthcare sector to store client records. Supply chain management is also another area where blockchain is being used to create efficiencies.
Cloud technologies - data storage is big business and players such as Amazon, Google & Microsoft are all front players in this market.
Smartphone device technology - Apple's iphone was the pioneer in this sector but now there are a host of smartphone providers such as Samsung and Huawei who are looking at how to improve mobile phone technology to create a competitive advantage
Why Invest In A Technology Fund Within An ISA?
Some things to consider include:
- Can I invest in a technology fund within an ISA? Yes you can. Options include technology tracker funds, investment trusts and ETFs.
- Charges - Passive funds will tend to have the lowest charges. Actively managed funds will be more expensive.
- Past performance - You can look at past performance typically over the last 5 years.
As with all investing make sure the fund is line with your requirements and you are comfortable with the risk profile.
Some funds are more volatile than others in the technology space due to the nature of the sector.