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FE Fundinfo has given the JP Morgan fund a five-crown rating, while the T Rowe Price fund receives one crown.
The crown-rating methodology assesses the fund’s alpha, volatility and consistency of performance.
Given that the fund managers of both funds need to establish their own track record, McDermott prefers the T Rowe Price given its bigger team.
“The impressive strength and depth of the research team at T Rowe Price is a real stand-out feature. Analysts go to lengths to understand the impact of all competitors in the [tech] industry peer group and use this as a key part of their analysis on the outlook for a company,” he said.
McDermott also likes that the T Rowe Price vehicle has a global remit, which can tap into the growing technology market in China and other Asia countries.
That said, McDermott believes that the JP Morgan fund is suitable for investors who believe that the US technology sector will continue to outperform the rest of the world.
“More experienced investors who know the technology sector well may still back the US, but they should be aware that there is more geographical as well as sector risk associated in the product,” he said.