Too many tech funds were brought out in the 1990's and many of them were ill-conceived as long-term investments.
Investors are more aware of the risks associated with these offerings. We'll see more consolidation of technology funds and that's a healthy thing.
A lot of the funds in this rally are really some of the more speculative, riskier ones around and investors should be careful about chasing their performance.
A lot of the companies these funds have invested in have run pretty hard. Chasing performance here is probably a recipe for disaster.
Any time you see a substantial deviation in returns with a fund compared to its category, it's usually because it's taken a substantial risk to get there. These funds aren't less risky now. It's just that the stocks they've invested in have finally started to come back.