Schroder Unit Trusts has introduced its first EuroTech Fund because it believes European companies will continue to stay ahead of America in the development of third generation mobile phones, which offer access to the Internet.
The fund is not for the faint-hearted. It is most suitable for sophisticated, specialist investors who are prepared to take high risks in the search for capital growth. But unless those investors wanted pure exposure to technology stocks, they could opt for global technology funds that also include some European technology stocks.
The recent correction in the Nasdaq would suggest that the timing is good for buying technology stocks as they are not as overvalued as they were and can be bought at a cheaper price. But if that correction hits European stocks investors could lose money.
According to Standard & Poor's Micropal, the Schroder Institute European fund is ranked 48th out of 90 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to May 22, 2000.