Technology Funds

November 04, 1999

WingspanBank.com presents Christine Benz, Associate Editor with Morningstar, who discusses in an online interview issues concerning investing in technology funds and mutual funds.

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Wingspan Bank: WingspanBank.com is proud to introduce Christine Benz, an associate editor with Morningstar® who specializes in small- company growth and technology offerings, as well as the Janus and Legg Mason fund families. Christine heads Morningstar's domestic-equity fund team. She has been widely quoted in publications including The Wall Street Journal, The New York Times, Money, and SmartMoney, and frequently appears on CNBC. Before joining Morningstar in 1993, she spent five years in educational publishing, writing and producing software and videos. She has earned bachelors degrees in political science and Russian and East European studies from the University of Illinois at Champaign-Urbana. Today, Christine will answer your questions about shopping for, and investing in, technology funds. For a schedule of upcoming chats on a range of topics, go to our site at www.wingspanbank.com and select the "Plan" tab.

Christine Benz: Hi! Thanks for coming to chat tonight. Technology funds are having a great year, with the average fund having gained more than 60 percent so far this year in 1999. I'm here to talk about how to pick a good one, as well as field any other mutual fund related questions you might have.

Sfcarl: How does the industry define a technology fund?

Christine Benz: We at Morningstar go by the fund's prospectuses in determining what's a technology fund.

Kcgrrl: Can you describe the risk of technology funds compared to other funds?

Christine Benz: That's a great question. I think they are plenty more volatile, both on the up side and on the down side. The other risk right now is that they have had such a terrific run, many of the stocks in the sector are pretty expensive now.

Xiannie: Are there different types of technology mutual funds? What are they?

Christine Benz: Yes, there are a number of different types. The traditional type is one that is pretty well diversified across industries within technology. But increasingly there is a new breed of fund that is more specialized and might invest in just one sub- sector. Internet focused funds have been cropping up all over the place, for example.

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