The crisis of bank failures in Europe and the United States previously drove a large outflow of funds from the stock market to financial stocks. Fears of triggering a financial turmoil, the market expects the Federal Reserve’s policy to return to dovishness, which has made technology stocks, whose evaluations have been greatly revised by the Federal Reserve’s interest rate hikes in the past year, perform strongly recently. The rise in technology stocks has also led to the outstanding performance of related funds. Looking at the 77 global stock funds issued by Investment Trust, the top ten returns in the past month are mostly technology stock funds.
The return rates of these ten funds have all been above 3% in the past month, and most of them have returned more than 10% this year, which is far better than the average of 3.33% in the same group.
Among them, Uni-President Global New Technology Fund, which has the highest performance, is not only the only fund with a return rate of more than 7% in the past month, but its long-term performance is even more astonishing. The three-year and five-year return rates of this fund have reached 60.35% and 73.82% respectively, far exceeding the average of the same group.
Guo Zhiwei, manager of Uni-President’s global new technology fund, said that in addition to the slowdown of the Federal Reserve’s interest rate hikes, which reduces the pressure on technology stocks to be revised down, the profit growth of technology stocks is also the reason why they are favored by funds. Against the background of uncertainties in the economic recovery in the second half of the year, the destocking of global technology stocks is coming to an end, and the expansion of AI applications has become a new growth momentum for profit, making technology stocks attractive for investment.
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