How to Invest in Nanotech Mutual Funds

The future is here in the form of nanotechnology, the science of molecular-sized robots and micromachines that can work in zero-gravity environments or within the living cells of a human. Revenue from the development, manufacture and application of nano-scaled products will reach more than $2.6 billion by 2014, according to Lux Research, a consulting company focused on nanotechnology. Nanotech mutual funds are ripe for investment.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• A computer with a high-speed connection to the Internet
• A knowledge of mutual funds and their risks
• A moderate understanding of nanotechnology
• Plenty of time to research investment options

1. Research the emerging nanotech industry at Forbes, BusinessWeek (see links to these publications in the Resources section below) or any other accredited financial site, and decide if nanotechnology is the type of investment that interests you.
2. Calculate the amount of money you'd like to invest in nanotech mutual funds, realizing the associated risks and other factors. If you don't have a lot of investment experience, you may want to speak with a broker or financial planner.
3. Select (or have a broker select for you) some mutual fund opportunities with a nanotech emphasis. These are becoming more available as the market grows, and can be found easily online.
4. Order a prospectus for each fund in which you're considering investing.
5. Read each prospectus carefully, and take notes.
6. Ask questions to decide in which fund or funds you'll invest. Ask trusted friends, your broker or representatives from those funds.
7. Make certain you understand the differences, however great or small, between your potential investments, and pick a fund (or funds) that meets your needs and requirements.
8. Invest in the mutual funds on which you've decided, or contact your broker to make your investment.

Tips & Warnings

• The semi-conductor, life sciences and energy industries will be the first to see the benefits of nanotech advancements.
• Established blue chip firms that apply nanotechnology to their existing product lines make a safer investment than start-up companies without a track record.
• Investing in mutual funds allows you to limit your risks by spreading them out over a number of companies.
• Nanotech breakthroughs may start in universities, as they have the proper research and financial machinery already in place.
• Mutual funds, like all speculative investments, involve risk.
• Nanotech could experience a boom-and-bust effect like the dot-com craze; avoid investing in companies without a strong technical and scientific background.
• Even with technological advancements, it still takes about seven years for products to get from the drawing board to store shelves.