Investors in tech shares unfazed by fall in Nasdaq, industrial indices
Cash continues to flow into technology mutual funds despite the sharp fall in Nasdaq and other industrial indices, as it is considered a mega-trend for long-term investment, experts say.
Theeranat Rujimethapass, president of Tisco Asset Management, said that Nasdaq and other industrial indices fell sharply due to short-term market correction, as the share prices in the technology group had risen more than other groups. He added that these indices would rebound from injected liquidity, which was likely to flow into technology shares.
"This is an opportunity to invest in technology shares because they are considered a mega-trend for long-term investment," he said. "We have found that cash is still flowing into technology mutual funds, although some investors sold some of these stocks to take profit last week."
Suradech Kietthanakorn, managing director of Kasikorn Asset Management, said that since the sharp fall in the Nasdaq Index, cash was still flowing into the company's technology mutual funds because it is a stock investors have high expectations from.
"However, we advise investors to evaluate the situation before investing in technology shares because they have a concentration risk," he said. "Also, investors should diversify investment in line with acceptable risks."
Somchai Amornthum, executive vice president of Krungthai Asset Management, said the Nasdaq index fell sharply due to the decline in the prices of some shares, such as Apple and Microsoft, which caused a 40 per cent impact on the index.
"However, we believe that Apple and Microsoft will be good choices for investment in the long term because of strong fundamentals," he said.
He advised investors to diversify risks because technology shares may face volatility in the short term and concentration risk.
