Teleworking, video calls with friends and family, increased consumption of entertainment and e-commerce platforms … The spread of the Covid-19 throughout the world and the progressive isolation of society have transformed the way people relate, work and consume.
And, in that change, technology is being the key. Therefore, it is not surprising that it has become one of the star sectors in which to invest in recent months.
But, What will happen when the world begins to carry out its normal life again? According to a report by Sean Marlowicz, a strategist in Schroders’ research and analysis division, once confinement is lifted and the global economy improves, FAMAG (Facebook, Amazon, Microsoft, Apple and Google) could benefit from changes in consumer behavior acquired during the crisis.
“Social media platforms are gaining new audiences, people spend more time on the phone And shoppers are getting used to ordering food. These changes in digital consumption trends could lead to permanent disruptions in consumer habits, “says Marlowicz.
They would also have the ones to win in the business world, and even in the face of new disruptive measures around the Covid-19, such as the contact tracking application development. The report also highlights the cash reserves of these companies, as they are generally above average, few short-term liabilities and strong cash-generating capacity.
Funds with which to take advantage of the pull
But not only the big names in the sector are getting a good performance in these months. More than twenty Nasdaq stocks earn double-digit returns since January. Some names stand out like Nvidia Corporation, with an increase of 53.44% in 2020, Regeneron Pharmaceuticals, with 51.78%, or, of course, Tesla Motors which adds up to more than 95.27%. It is also possible to find value in other smaller companies that at first glance may go unnoticed, but would not do so in the eyes of an expert. These are the best performing investment funds showing this exercise.
Echiquier Artificial Intelligence: With a return of 25.7% for the year, this sub-fund of the L’Echiquier financial manager was created just under two years ago. It is described as a dynamic fund that seeks long-term performance through exposure to growth stocks in international markets. In particular, search invest in companies that develop artificial intelligence or companies that benefit from it. It is characterized by having an exposure of at least 60% in global stocks, including the euro area and emerging markets. Although its exposure to shares in these markets amounts to 30% of net assets. Its top five positions are divided between Alteryx, Nvidia Corp, Service Now, Twilio and Okta.
BGF Next Generation Technology Fund: Again this is a fund of less than two years of creation. This sub-fund of the Blackrock fund manager provides a 22.63% return for the year and aims to maximize the return on your investment through a combination of capital growth and return on assets.
At least 70% of its total assets are invested in equities of companies worldwide whose main economic activity includes the research, development, production or distribution of new and emerging technologies.
Specially in companies dedicated to the latest technology such as artificial intelligence, computing, automation, robotics, technological analysis, electronic commerce, payment systems, telecommunications, and generative design. Among his biggest positions are Tesla, Ping An Healthcare and Technology, Inphi Corp, RingCentra or Atlassian Corporation.
JP Morgan Funds-US Technology Fund: This 10-year-old sub-fund is characterized by its medium to long-term performance. If in the year it adds up to 20.6%, at 12 months it rises to 27.87%, and up to 109.2% at 36 months, which places it as the first in the ranking for three-year profitability.
The product focuses on providing long-term capital growth by investing primarily in US companies related to technology, media, and telecommunications, even if they are listed in other markets. Currently his biggest positions are in Advanced Micro Devices, Synopsys, Alphabet, Microsoft and Nvidia.
Are there more profitable funds than my stock?