RS Technology Fund seeks to achieve long-term capital appreciation by aggressively investing in companies principally within the information technology sector. The Fund is designed for investors who believe that aggressive investment in these companies provides significant opportunity for capital appreciation.
Investment Objective
Long-term capital appreciation.
Investment Strategy
The Fund invests principally in equity securities. The Fund normally invests at least 80% of its net assets in technology companies. The Fund may invest in companies of any size. Under current market conditions, the Fund will normally invest most of its assets in small- and mid-cap companies, although its portfolio will likely also include investments in a number of large-capitalization companies. The Fund typically invests most of its assets in securities of U.S. companies but may also invest any portion of its assets in foreign securities.
Although RS Investments may consider the factors described above in purchasing or selling investments for the Fund, RS Investments may purchase, sell, or continue to hold an investment for the Fund whenever it believes that doing so may benefit the Fund or on the basis that of any of the factors described above or any other factors it may at its discretion consider. In recent periods, the Fund has frequently held a substantial portion of its assets in cash and cash equivalents. The Fund may, but will not necessarily, do so in the future.
Investment Process
The Fund invests principally in technology companies. RS Investments typically considers a number of factors in evaluating a potential investment, including, for example, its assessment of:
• whether the company has experienced strong revenue growth;
• whether the company appears to have a strong competitive position;
• whether the company participates in what RS Investments considers an emerging growth industry or a niche in an established industry.
Sell Discipline
RS Investments may consider selling a security for the Fund if, for example, in RS Investments' judgment:
• the price of the security appears high relative to the company's prospects;
• the company's financial results are disappointing.
Risk Factors
As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. Investing in small- and mid-size companies can involve risks such as having less publicly available information, higher volatility, and less liquidity than in the case of larger companies. Funds that concentrate investments in a certain sector may be subject to greater risk than funds that invest more broadly, as companies in that sector may share common characteristics and may react similarly to market developments or other factors affecting their values. Investments in high-technology and Internet-related sectors may be highly volatile. Companies in these sectors operate in markets that are characterized by rapid change, evolving industry standards, frequent new service and product announcements, introductions, enhancements and changing customer demands.
