Several firms have brought Internet-based funds to market since the Munder NetNet Fund, the first Internet fund to hit the fund industry, was introduced in August 1996.
Additional products are now in the planning stages.
While this is solid growth, it is nothing compared to this year. Performance has been phenomenal. With unsustainable performance such as this, the question for strategic planners is whether Internet funds are a fad or will this fund type become another important sector for investor portfolios. Firms that have plans to release an Internet fund include ING, Stein Roe, Enterprise, and Equity Analysts. Also, Guinness Flight plans to add an Internet index fund, which would take advantage of two hot trends, the Internet and indexing.