Firsthand Funds

Investment Strategy

The Fund invests primarily in equity securities of high-technology companies in the industries and markets that we believe hold the most growth potential within the technology sector. The Fund currently invests in several technology areas, including: database, transaction processing, security, and customer relationship management software; computer hardware; and business services.

What sets the Fund apart from other Firsthand Funds?

Due to the Fund's focus on emerging opportunities within the technology sector, its investments tend to include younger companies with market capitalizations in the small- or mid-cap categories.


	Fund Receives Lipper Leader Ranking



	For the period ended 7/31/2010, Firsthand Technology Opportunities Fund was ranked a Lipper Leader¹ for Total Return (out of 129 funds).

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Top 10 Holdings

As of June 30, 2010

CyberSource Corp.

Baidu.com, Inc.

Akamai Technologies, Inc.

51job, Inc.

Apple, Inc.

Netflix, Inc.

VeriFone Holdings, Inc.

VeriSign, Inc.

Equinix, Inc.

10.

Microsoft Corp.

Percentages of Total Portfolio: 37.2%

Fund Facts

As of June 30, 2010

Co-Manager:

Kevin Landis

Tenure:

Since inception

Co-Manager:

Han Lee

Tenure:

Since 7/31/09

Total net assets:

$42.2 million

Number of companies:

2009 turnover:

41%

Inception date:

9/30/99

Ticker symbol:

TEFQX

CUSIP:

337941504

Sales load:

None

Redemption fee:

None

2009 gross expense ratio:

1.92%

2009 net expense ratio:

1.90%

ß (beta):²

1.16

r² (r-squared):³

0.73

Performance

Average Annual Total Returns vs. Indices⁴

As of June 30, 2010

Month-End Performance Update

As of July 31, 2010

Firsthand Technology Opportunities Fund

NASDAQ

S&P 500
Index

Since inception*

-6.49%

-1.82%

-0.24%

10-Year

-10.35%

-5.50%

-1.59%

5-Year

9.63%

1.39%

-0.79%

3-Year

1.71%

-5.88%

-9.79%

1-Year

32.69%

16.04%

14.43%

Q2 '10**

-2.42%

-11.82%

-11.41%

	Firsthand Technology Opportunities Fund

Since inception*	-5.95%

10-Year	-8.28%

5-Year	9.74%

3-Year	4.88%

1-Year	33.07%

YTD	9.19%

* 9/30/99 ** Not annualized

The Fund's performance information assumes reinvestment of all dividends and includes all Fund expenses, but does not reflect the impact of taxes. Performance data quoted represent past performance, which is not a guarantee of future results, and current performance may be lower or higher than the performance quoted. Both the return from and the principal value of an investment in the Fund will fluctuate so that any investor's shares, when redeemed, may be worth more or less than their original cost.

The Fund's total operating expenses are 1.85%. Under the Investment Advisory Agreements, the Investment Adviser has agreed to reduce its fees and/or make expense reimbursements so that the Fund's total operating expenses are limited to 1.85% of the Fund's average daily net assets up to $200 million, 1.80% of such assets from $200 million to $500 million, 1.75% of such assets from $500 million to $1 billion, and 1.70% of such assets in excess of $1 billion.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through June 30, 2010

Chart represents the growth of a hypothetical $10,000 investment from Firsthand Technology Opportunities Fund inception date until the end of the quarter indicated. Firsthand Technology Opportunities Fund performance assumes reinvestment of all dividends and includes all Firsthand Technology Opportunities Fund expenses but does not reflect the impact of taxes.

Portfolio Holdings

As of June 30, 2010

By Industry

Internet	28.6%
Software	13.5%
Business Services	8.0%
Computer	6.6%
Communications	6.0%
Semiconductors	5.8%
Other Electronics	5.1%
Communications Equipment	2.9%
Consumer Electronics	2.7%
Other	2.3%
Battery	2.1%
Renewable Energy	2.1%
Internet Security	1.5%
Net Cash	12.8%

By Market Cap

Giant Cap (>$25B)	12.7%
Large Cap ($5-$25B)	20.7%
Mid Cap ($1-$5B)	29.4%
Small Cap (<$1B)	24.5%
Net Cash	12.7%

By Country

United States	77.5%
China	15.4%
United Kingdom	2.4%
Netherlands	2.1%
Sweden	1.8%
Other	0.8%

Portfolio assets such as cash, treasuries, options, and warrants are not presented in the top 10 list.

The information provided should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities purchased remain in the Fund's portfolio or that securities sold have not been repurchased. Also, you should note that the securities discussed, even if they have been purchased by the Fund, do not represent the Fund's entire portfolio and, in the aggregate, may represent only a small percentage of the Fund's holdings. There can be no assurance that any Firsthand Fund will buy, sell, or hold any particular security after the date referred to in the discussion.

Distributions

As of June 30, 2010

Distribution History
2009 total distributions:	None
2008 total distributions:	None
2007 total distributions:	None
2006 total distributions:	None
2005 total distributions:	None
2004 total distributions:	None
2003 total distributions:	None
2002 total distributions:	None
2001 total distributions:	None
2000 total distributions:	$0.0508
1999 total distributions:	None

Most Recent Distribution
Record Date:	12/14/00
Ex-Date:	12/15/00
Reinvestment Price:	$7.41
Expected Distribution Frequency:	Annual



¹		Lipper ratings for Total Return reflect funds' historical total return performance relative to peers as of 7/31/10. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return metrics over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Firsthand Technology Opportunities Fund in Lipper's Science and Technology Funds classification, received the following ratings for the 3-, 5-, and 10-year periods, respectively: Lipper Leader (129 funds), Lipper Leader (114 funds), and 3 (74 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright 2010, All Rights Reserved.

²		Beta is a measure of a given fund's historical performance as compared to the S&P 500 Index (the "benchmark"). A beta greater than 1 indicates that the fund's performance has tended to magnify the movements of the benchmark (in either direction). A high beta suggests that a fund has responded strongly to variations in the market, and a low beta suggests relative insensitivity to variations in the market.

³		R-squared measures the portion of a fund's historical movements that can be explained by the movements of a benchmark index (usually the S&P 500 Index). An r-squared of 1.00 means that all of the fund's historical movements can be explained by the benchmark index's movements. An r-squared of 0.00 indicates that none of the fund's movements can be explained by movements in the benchmark index.

⁴		The NASDAQ Composite Index (NASDAQ) and the Standard & Poor's 500 Index (S&P 500) each represent an unmanaged, broad-based basket of stocks and are typically used as benchmarks for overall market performance. The indices' performance figures assume the reinvestment of all dividends (except where noted), but do not reflect the impact of taxes. Additionally, because an investor cannot invest in an index directly, indices' performance figures do not reflect the expenses associated with the management of an actual mutual fund portfolio.

		Firsthand Technology Opportunities Fund is subject to greater risk than more diversified funds because of its investments in fewer securities and because of its concentration of investments in certain industries in the technology sector. Specific risks associated with investments in the e-commerce industry (as described in the Fund's Prospectus) could cause the Fund�s share price to fluctuate dramatically. The Fund's investments in small-cap companies present greater risk than investments in larger companies. The Fund invests in several industries within the technology sector and the relative weightings of these industries in the Fund's portfolio may change at any time. Equity investing involves risks, including the potential loss of the principal amount invested.