Are you a budding tech investor? The tech sector performed extremely well in May, despite the recent focus on the need for regulation that has dogged it. 

The sector returned 7.84% in May, making it the second best performer according to data from FE Trustnet. The best performing sector was the North American Smaller Companies sector at 8.38% that also includes many technology companies. 

In terms of individual funds, the highest performing fund was the Baillie Gifford Global Discovery fund, which is 34% invested in the tech sector. The top three individual funds have at least a partial technology focus. 

A new record close of 7,588.32 was hit by the technology focused Nasdaq composite on the 5th of June. Microsoft, Amazon and Netflix rose in May, with shares in Apple notching up a new record. 

The disparity in returns between tech and rest of the market can be illustrated by the fact that the Technology Select Sector SPDR ETF provided a 2.68% return to investors when compared with 1% for the whole of market SPDR S&P 500 ETF during the week of 29th May to the 4th of June. 

The Cambridge Analytica data scandal seems to have been consigned to the dustbin as tech firms power ahead. However, there is increased political interest in reigning in big tech firms as the recent campaign to break Facebook, Instagram and WhatsApp presented to the Federal Trade Commission shows. 

Investors are still heavily focused on the sector, which in the climate of the US-China trade war has acquired a safe haven status due to the fact that many large tech firms have no exposure to China. Even Apple, with a large manufacturing operation in China is not being affected at this stage. 

Are you interested in learning more about whether tech investments are appropriate for you as part of a diversified portfolio? Our skilled advisers can help you put a balanced financial plan in to place according to your needs, objectives and risk appetite. 

The value of investments and income from them may go down as well as up and you may not get back the original amount invested. 

Information is based on our current understanding of taxation legislation and regulations which is subject to change. 

Past performance is not a reliable indicator of future performance.