How to take a profitable stake in the technological revolution We also like the Axa Framlington Global Technology fund, which is more biased to the US but includes investments in smaller companies. Take a passive approach If you want diversification but are not convinced that a fund manager will be able to identify the success stories, a tracker fund is the way to go. These funds automatically buy the shares in a relevant index, such as the FTSE Techmark, without the involvement of a fund manager. Costs are often lower; the L&G Global Tech Index fund, for example, costs 1.16pc a year, according to Morningstar, meaning that you will pay £116 on a £10,000 investment. Pick your own stocks Determined to buy only the stocks that you think will soar? Follow the example of professional investors and check how vulnerable to new competitors a tech company is and whether it has a credible plan for turning a large user base into some form of revenue generation. If the company is already profitable, assess how likely it is to stay that way. Apple, for example, has fallen out of favour with investors recently but Jeremy Gleeson, who manages the Axa Global Technology fund, said it had a huge number of customers who had signed up to services such as the app store and the iTunes music service and were therefore very likely to carry on spending with Apple "for many years to come." These customers also belong to a demographic group - young, well off and happy to spend on the latest technology - that is very attractive for the company. "Apple shares are less highly valued relative to earnings than Microsoft," Mr Gleeson said. This is very surprising, as Microsoft has probably stopped growing. He said Google had demonstrated its ability to turn popular online services into money and was on the brink of producing serious profits from YouTube as the video service evolved into a television "channel." Buy big This could be the right time to buy the biggest tech firms, one respected investment house said. Miles Standish of the UK arm of Fisher Investments said the largest companies tended to outperform in the second phase of bull markets - and tech companies were heavily represented among the "mega caps." He said the improving economy should be positive for these companies as they could benefit from increased IT spending by their customers. "What's more, the largest tech companies generally have strong balance sheets, providing stability and the potential for expanding their profitable business lines, taking over their competition or increasing their dividends," Mr Standish said. Any or all of these could well push share prices significantly higher.