Best Technology Investment Funds – Our Top 5 Picks

If you are looking for long term growth and you are prepared for some volatility with your investment then it is worth taking a closer look at technology as an investment option.

The term technology covers a number of different areas including:

  • Software and hardware manufacturers
  • Electronic services
  • IT services
  • Business data processing
  • Enteratinment streaming services.

Whilst you could carry out research yourself on technology companies, the advantage of a fund is that a team of experts do all the hard work for you and you can gain exposure to a spread of companies cost effectively. You can either opt for a low cost index tracker approach such as the L&G Technology Index fund which tracks the FTSE World Technology Index or you can opt for a actively managed fund.

Active fund managers such as Allianz Global Investors and Polar Capital have dedicated teams who focus purely on the technology  sector. For example the Allianz Technology Trust has a focus on identifying trends that have the potential for identifying the tomorrow’s Apple or Microsoft.

1. Legal & General Technology Index

This is an index tracker fund with the FTSE World – Technology Index used as a benchmark investing in the shares of global companies engaged in information technology activities.

Invest From
£25 per month or £100 single
Fund

L&G FTSE Global Technology Index Tracker Fund

Ongoing Charge
0.32%
ISA, SIPP & Direct Investment

Our view:A low cost way of investing in shares of global companies engaged in information technology activities, as represented by the FTSE World Technology Index. The fund has significant holdings in Apple and Microsoft. You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online.

Available via:

Interactive Investor platform »

Hargreaves Lansdown Platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

2. Allianz Technology Trust

Allianz Technology Trust is an investment trust  investing  in a diversified focused portfolio of companies that use technology in an innovative way to gain a competitive advantage. Particular emphasis is placed on companies that are addressing major growth trends with innovation that replaces existing technology or radically changes products and services and the way in which they are supplied to customers.

Invest From
£25 per month or £100 single
Fund

Allianz Technology Trust

Ongoing Charge
0.92%
ISA, SIPP & Direct Investment

Our view: The award-winning Allianz Technology Trust offers investors access to the fast moving world of technology, the single greatest contributor to global growth. The Trust is managed by Walter Price and the AllianzGI Global Technology Team based in San Francisco. The team benefits from its close proximity to Silicon Valley where many of the world’s key technology companies are headquartered.

Available via:

Interactive Investor Platform »

Hargreaves Lansdown Platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

3. Polar Capital Technology Trust

A leading technology investment trust that aims to maximise long term capital growth through a diversified portfolio of global technology companies.

Invest From
£25 per month or £100 single
Fund

Polar Capital Technology Trust

Ongoing Charge
0.99%
ISA, SIPP & Direct Investment

Our view: Polar Capital Technology Trust plc provides investors with access to the potential of companies in the global technology sector. Managed by a team of dedicated technology specialists, PCT has grown to become a leading European investor with a multi-cycle track record – a result of the managers’ approach to investing, with the ability to spot developing technology trends early on and to invest in those companies best placed to exploit them.

Available via:

Hargreaves Lansdown Platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

4. Fidelity Global Technology

This fund aims to provide investors with long term capital growth through global companies that have or are developing products and processes that will benefit from technological advances and improvements.

Invest From
£25 per month or £100 single
Fund

Fidelity Global Technology

Ongoing Charge
1.02%
ISA, SIPP & Direct Investment

Our view: The fund aims to provide investors with long-term capital growth, principally through investment in the equity securities of companies throughout the world, that have, or will, develop products, processes or services that will provide, or will benefit significantly from, technological advances and improvements. As this fund may invest globally, it may be exposed to countries considered to be emerging markets.

Available via:

Interactive Investor Platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

5. AXA Framlington Global Technology

This fund aims to provide long term capital growth investing in the shares of companies engaged in research, design and development of technologies which the fund manager believes will provide above average returns.

Invest From
£25 per month or £100 single
Fund

AXA Framlington Global Technology Fund

Ongoing Charge
0.82%
ISA, SIPP & Direct Investment

Our view: The award-winning Allianz Technology Trust offers investors access to the fast moving world of technology, the single greatest contributor to global growth. The Trust is managed by Walter Price and the AllianzGI Global Technology Team based in San Francisco. The team benefits from its close proximity to Silicon Valley where many of the world’s key technology companies are headquartered.

Available via:

Interactive Investor Platform »

Hargreaves Lansdown Platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

How do I invest in a technology fund?

You can invest in a technology fund directly or via a tax wrapper such as an ISA or self Invested Persional Pension. If you are investing on behalf of a child you can invest via a junior ISA or junior SIPP.

You can invest using an investment platform typically from £50 pm.

What is the best investment platform to use for a technology fund?

Today’s investor in 2020 has a lot of options to choose from.  One of the key considerations is cost. However picking the “cheapest” is not as simple as it sounds, as each platform has its own costing model which often makes it difficult to compare like for like.

Below we have outlined what can expect to pay in charges for 4 of the UK’s largest most popular investment platforms based on investing in the L&G Technology Index fund.

Investment Platform Annual Platform Fee L&G Tech Index Ongoing
Fund Charge
Annual Charge
on £10,000
Annual Charge
on £20,000
Annual Charge
on £40,000
Annual Charge
on £100,000
Annual Charge
on £250,000
Interactive Investor £9.99 pm flat fee 0.32% £151.88 £183.88 £247.88 £439.88 £919.88
Hargreaves Lansdown 0.45% up to £249,999, reducing
to 0.25% from £250,000 to £1m,
reducing to 0.10% from £1m to £2m.
No fee for assets over £2m
0.32% £77 £154 £416 £770 £1,425
AJ Bell 0.25% on first £250K 0.32% £57 £114 £256 £570 £1,425
Fidelity 0.35% from £7,500 to £249,999,
reducing to 0.2% from £250,000
to £1m. No fee for assets over £1m
0.32% £67 £134 £328 £670 £1,125

As you can see the right platform for you will depend on how much you are investing.

Other considerations include:

  • How easy is the platform to use and what tools and research is on offer
  • What fund discounts are there? different platforms have negotiated different discounts on funds
  • Customer reviews – useful in understanding strengths and weaknesses of platform providers
  • Level of customer service provided

Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

Written by Editorial Team ,
8th October 2020