For instance, Munder Funds offers three different tech funds, including two Internet funds, and Kinetics Asset Management offers five funds that carve up the Internet into different slices. I'm not sure how much of a place a B2B fund has in many portfolios. It's pretty speculative. The real advantage of buying funds is diversification. And when you buy these funds you lose most of that benefit.
Investors are the ones who have something to lose here.
If the funds don't work fund companies will just liquidate them and they'll be forgotten, but the money lost will be real. Fund companies are rolling out funds focused on last year's leader, health care funds, and the next new new thing, new power or alternative energy funds. If they can't, fund companies will be happy but investors might end up with more volatility than they need or want. Fund Junkie runs every Monday, Wednesday and Friday, as well as occasional dispatches. In keeping with TSC's editorial policy, he doesn't own or short individual stocks.