As per general understanding, tech stocks are companies which provide technology products. These can either be a technology service providers such as TCS, Infosys. It can be a B2C technology product company such as Zomato, PayTM. Or, it can be a B2B product company, such as Salesforce, Zoho etc.
Can investing in tech stocks help you build a strong portfolio?
For me, yes. Technology represents the 3rd Industrial Revolution. It enables all sectors including finance, business, automobile etc evolve in a more rapid pace. This means that technology stocks will grow faster annually, when compared with other traditional companies in manufacturing and finance. Faster growth rate will lead to higher EPS growth. This in turn will result in higher investment returns.
*Investing in tech stocks can be a good way to build a strong portfolio, but it's important to do your research and understand the risks involved.