Firsthand currently offers two no-load sector mutual funds. Firsthand Technology Opportunities Fund invests in equity securities of high-technology companies in the industries and markets that we believe hold the most growth potential within the technology sector. Firsthand Alternative Energy Fund invests in alternative energy and energy technology companies, both U.S. and international. Alternative energy includes solar, hydrogen, wind, geothermal, hydroelectric, tidal, biofuel, and biomass.
|Ticker Symbol||Closing NAV||$ Change||% Change||Data Sheet|
|Firsthand Alternative Energy Fund||ALTEX||$5.53|| $-0.01
|Firsthand Technology Opportunities Fund||TEFQX||$7.25|| $0.02
The Funds' performance information assumes reinvestment of all dividends and includes all Fund expenses, but does not reflect the impact of taxes. Performance data quoted represent past performance, which is not a guarantee of future results, and current performance may be lower or higher than the performance quoted. Both the return from and the principal value of an investment in the Fund will fluctuate so that any investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance as of the most recent month-end, please contact Firsthand Funds by calling 1.888.884.2675 or go to www.firsthandfunds.com.
Sector funds enable investors to gain exposure to a sector of the economy without having to research hundreds of individual stocks. This advantage, however, must be weighed carefully against the risks associated with sector investing. Technology funds, like other sector funds, can be volatile investments. Because all of our funds are non-diversified and concentrate their investments in the technology and alternative energy sectors, the funds are best suited for investors who are willing to accept the risks associated with sector investing.
For example, a broadly diversified portfolio can often minimze the risks posed to the portfolio by any single sector by investing in hundreds of stocks across several sectors. On the other hand, even though a sector fund may have 50 or 100 or 150 stocks in its portfolio, it is still 100% exposed to one sector. So, while a sector fund has maximum exposure to sector-specific growth, it has maximum exposure to sector-specific risk as well. This is one of the reasons why a sector fund should never comprise 100% of your investments, but should instead represent a small fraction of your total portfolio.
For more information on sector investing and how one of our sector funds might fit your investment needs, please click here.
The Firsthand Funds Advantage
Firsthand Funds currently offers two no-load sector mutual funds. We believe that there are several aspects of our investment approach that are worth considering.
- We are headquartered in California's Silicon Valley.
- We believe in the importance of hands-on industry experience to successful technology investing. Members of our investment team have technical degrees and years of work experience in the technology sector.
- We have built an extensive network of industry contacts through our collective years of service with technology companies.
- Unlike some technology sector funds that focus on single industries, such as semiconductors, each Firsthand Fund spreads its investments across several different industries within the technology sector.
The Risks of Sector Investing
Our technology sector funds focus their investments in a single sector: technology. Thus, the funds are subject to greater risk and volatility than more diversified funds. Because the return on and value of an investment in the Fund will fluctuate in response to stock market movements, the most significant risk of investing in the funds is that you may lose money. Potential investors should be aware that an investment in a technology sector fund does not, by itself, constitute a balanced portfolio and is not appropriate if your key goal is preservation of capital.
You might be interested in an investment in our technology sector funds if:
- Your goal is to add technology investments to a broadly diversified portfolio,
- You lack the time or expertise to research and manage a portfolio of individual technology stocks,
- You are comfortable assuming a higher degree of risk and volatility in a portion of your investment portfolio, and
- You have an investment horizon of at least three to five years.
Equity investing involves risks, including the potential loss of the principal amount invested. Firsthand Funds are subject to greater risk than more diversified funds.