If you worry about your tech Isa..

By SARAH JAGGER
Updated: 19:00 EST, 16 April 2000

Technology funds were seen as a one-way route to riches, and three quarters of all this year's last-minute Isa money went into these funds, acccording to stockbrokers Hargreaves Lansdown. But most of these Isa investors will have seen up to a third wiped off the value of their funds in recent weeks. Today's continuing slump is making matters worse, so what should investors do?

Mark Dampier of stockbrokers Hargreaves Lansdown says: 'My advice is do nothing. The global technology sector has plunged 25% in the last four weeks but you should bear in mind that when you invest in an Isa you should be looking to leave your money invested for at least five years. The technology sector will always be volatile. Over the past few weeks is that much of the froth has been blown off a sector which needed to cool down anyway.

'Now could even be a good buying opportunity. So if you've got the maximum £7,000 to invest in a maxi Isa I'd start by investing £500 a month until the market takes a tumble and then top up your Isa to the limit. The last great market fall we had was in October 1998 and that again was a great buying opportunity, although many missed it. If you'd bought into a global tech fund then your investment would have seen a 200% return. But don't expect an easy ride.'

Jason Hollands of independent financial adviser Best Investment 'This is an ironic and dramatic end to a time when Isa investors craved technology funds above all else. A huge swarm of investors who've piled into tech funds for their Isas are now going to learn the reality of the statement that past performance is not necessarily a guide to future performance. However, technology is having a radical impact on the world we live in and there are some great companies out there.

'If you're in a technology fund you shouldn't be viewing it as a short-term investment so these latest falls should not worry you too much. You should be looking to hold for at least five years.'

This is Money says: Don't panic if you've recently started up a technology Isa. You should be looking to hold the fund for at least five years, which should ride out dramatic falls and rises. If you can't decide which Isa to start-up this new tax year but want to steer clear of technology altogether, look to income funds which invest purely in 'old economy' stocks. If you want some exposure look at the remit of the fund. Most straightforward UK growth and smaller companies will have some exposure to technology. If you want a technology Isa stick with established funds with proven track records. The best of these funds are investing in a range of hardware and technology-related companies rather than pure internet companies.