Firsthand Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:  811-8268
______________________________________________

FIRSTHAND FUNDS
______________________________________________________________________________
(Exact name of registrant as specified in charter)

125 SOUTH MARKET
SUITE 1200
SAN JOSE, CALIFORNIA 95113
______________________________________________________________________________
(Address of principal executive offices)(Zip code)

(Name and Address of Agent for Service)	Copy to:
Kevin M. Landis Firsthand Capital Management, Inc. 125 South Market, Suite 1200 San Jose, California 95113	Kelvin K. Leung, Esq. Firsthand Capital Management, Inc. 125 South Market, Suite 1200 San Jose, California 95113
	Scott M. Zoltowski, Esq. State Street Bank and Trust Company One Federal Street Boston, Massachusetts 02110
	Steven G. Cravath, Esq. Morrison & Foerster LLP 2000 Pennsylvania Avenue, NW Washington, DC 20006-1888

Registrant's telephone number, including area code:  (408) 294-2200

Date of fiscal year end:  December 31
Date of reporting period:  December 31, 2004

Item 1.  Reports to Shareholders.

This report is provided for the general information of the shareholders of Firsthand Funds.

This report is not intended for distribution to prospective investors in the Funds,
unless preceded or accompanied by an effective prospectus. For more complete
information about Firsthand Funds, please call toll free 1.888.884.2675 or
visit www.firsthandfunds.com for a prospectus, which contains more information,
including risks, fees, and expenses. Read the prospectus carefully before
investing or sending money.

Firsthand Funds are distributed by ALPS Distributors, Inc.

CONTENTS
Performance Summary	2
President's Letter	4
Shareholder Fee Example	6
Performance and Portfolio Discussions
Firsthand Technology Value Fund	8
Firsthand Technology Leaders Fund	10
Firsthand Technology Innovators Fund	12
Firsthand e-Commerce Fund	14
Firsthand Global Technology Fund	16
Financial Statements
Portfolio of Investments
Firsthand Technology Value Fund	19
Firsthand Technology Leaders Fund	23
Firsthand Technology Innovators Fund	25
Firsthand e-Commerce Fund	28
Firsthand Global Technology Fund	30
Statements of Assets and Liabilities	32
Statements of Operations	34
Statements of Changes in Net Assets	36
Financial Highlights
Firsthand Technology Value Fund	41
Firsthand Technology Leaders Fund	42
Firsthand Technology Innovators Fund	43
Firsthand e-Commerce Fund	44
Firsthand Global Technology Fund	45
Notes to Financial Statements	46
Additional Information	60

2004 Annual Report - 1

PERFORMANCE SUMMARY

Period Returns
(average annual total returns as of 12/31/04)
	Q4 '04	1-YEAR	3-YEAR	5-YEAR	10-YEAR
FUND	TOTAL*
Firsthand Technology Value Fund®	10.70%	-6.62%	-10.59%	-18.47%	13.56%
Firsthand Technology Leaders Fund	13.87%	-2.79%	-3.88%	-17.81%	•
Firsthand Technology Innovators Fund	14.94%	-12.80%	-14.98%	-23.01%	•
Firsthand e-Commerce Fund	16.19%	5.56%	-1.01%	-26.20%	•
Firsthand Global Technology Fund	17.91%	-7.16%	-5.92%	•	•
Nasdaq	14.87%	9.15%	4.20%	-11.42%	11.65%
DJIA	7.59%	5.31%	4.70%	0.68%	13.09%
S&P 500	9.23%	10.88%	3.58%	-2.30%	12.05%
* Not annualized.

Returns assume reinvestment of all dividends and distributions but do not reflect the impact of taxes. The performance data quoted represent past performance. Past performance cannot guarantee 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 Funds will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance as of the most recent month-end, please contact Firsthand Funds by calling 1.888.884.2675 or go to www.firsthandfunds.com.

Each Fund may invest in small-capitalization companies and Initial Public Offerings ("IPOs"). These investments are more volatile than investments in large-capitalization companies and loss of principal could be greater. The Funds may invest in foreign securities, which are subject to greater risks than investing in domestic securities. Because the Funds are not diversified, they can take larger positions in fewer companies, increasing their risk profile. The Funds invest in several industries within the technology sector and the relative weightings of these industries in a Fund's portfolio may change at any time.

The Dow Jones Industrial Average (DJIA) is a group of 30 stocks tracked by the Dow Jones Company. The Nasdaq Composite Index (Nasdaq) is a capitalization-weighted index of all common stocks listed with Nasdaq. The Standard & Poor's 500 Index (S&P 500) is a market-weighted index of 500 stocks of well-established companies. Each index represents an unmanaged, broad-based basket of stocks. These indices are typically used as benchmarks for overall market performance. The Lipper Science and Technology Fund Index includes the largest 30 mutual funds in the group, which, by prospectus or portfolio practice, invest at least 80% of their equity portfolios in science and technology stocks.

2004 Annual Report - 2

Returns Since Inception
(average annual total returns as of 12/31/04)
	AVERAGE
	ANNUAL
	TOTAL			S&P
FUND (INCEPTION DATE)	RETURN	NASDAQ	DJIA	500
Firsthand Technology Value Fund® (5/20/94)	15.14%	11.28%	12.68%	11.58%
Firsthand Technology Leaders Fund (12/10/97)	7.80%	4.63%	6.20%	4.66%
Firsthand Technology Innovators Fund (5/20/98)	4.67%	2.88%	4.63%	2.85%
Firsthand e-Commerce Fund (9/30/99)	-19.25%	-3.99%	2.77%	0.43%
Firsthand Global Technology Fund (9/29/00)	-18.00%	-11.21%	2.35%	-2.37%

2004 Annual Report - 3

DEAR FELLOW SHAREHOLDERS,

2004 was a year defined by fear: We heard that the real estate bubble was going to burst (it didn't), that China was growing too fast (then that it was growing too slowly), that interest rates were going to soar (they were up just 1%), and that there would be terrorist attacks at the Olympics in Greece and the political conventions in the United States (there weren't).

It's a testament to the steady improvement in the fundamentals of corporate profits that, despite this poor psychological backdrop, the major indices were able to eek out modest gains for the year. Unfortunately, the same can't be said for many tech stocks. I am disappointed to report that only one of our funds, Firsthand e-Commerce Fund, enjoyed a positive return this year. The other four Firsthand Funds each underperformed both the Nasdaq Composite Index and the Lipper Science & Technology Fund Index (see the Performance Summary on pages 2 and 3 and the Financial Highlights on pages 41 to 45 of this report for more information).

Within the technology sector, there was a dramatic polarization in stock performance in 2004. The Goldman Sachs Internet Index, for example, was up 23.25% for the year, while the Philadelphia Stock Exchange Semiconductor Index was down 14.47%. The Goldman Sachs Software Index was up 13.66%, while the American Stock Exchange Networking Index was up just 0.10% for the year. As these index comparisons suggest, many technology companies and industries had a great year in 2004. A host of software and Internet stocks, for example, posted tremendous gains this year as demand for certain flavors of enterprise software and Internet advertising flourished. On the flip side, however, semiconductor stocks were hammered in 2004, despite 30% revenue growth in the industry. Our funds' tendency to carry relatively heavy semiconductor weightings generally hurt performance this year. The Performance and Portfolio Discussions on the pages that follow share specific performance attribution for each fund.

Despite the sector's mixed results, we saw the strengthening of several trends in 2004 that we expect to keep delivering positive news. Shipments of cellular telephone handsets grew sharply in 2004, reaching an estimated 560 million units worldwide. Benefitting from this growth, QUAL-COMM (QCOM) was Firsthand Technology Leaders Fund's biggest single mover. This market was thought to be stalled at just over 400 million units in 2002, but is expected to exceed 600 million units in 2005-a 50% increase in only three years. More importantly, handset users seem eager to adopt new features, particularly embedded digital cameras. In 2003, cameraphones were just 16% of all cellphones sold (a total of 84 million units). In 2004, that percentage grew to more than 30%, with cameraphone shipments exploding to nearly 180 million units last year. While some investors may be scared off by projections that the handset market could plateau in 2005, we see a great deal of potential growth in a nearly 600-million-unit market, and there are a number of new features and technologies on the horizon, including GPS and digital music, poised for adoption by users hungry for more capabilities.

Digital music was another hot area in 2004, with Apple's handheld digital music player-the iPod-selling an estimated eight million units. While Apple's iPod and iTunes grabbed most of the headlines, several other providers were flourishing more quietly. One of these was Napster (NAPS), formerly Roxio, which was the leading positive contributor to Firsthand Technology Innovators Fund in 2004. Now that the music industry has jumped on board the online bandwagon, we are finally seeing digital music distribution becoming a viable, growing business. It's a business that stands to gain tremendously from the continued growth in the cellphone market: Imagine songs being downloaded onto hundreds of millions of cellphones instead of just a few million iPods.

2004 Annual Report - 4

This past year was also one of phenomenal growth for broadband wireless technologies, particularly WiFi and the rapidly emerging WiMax technology. Israel's Alvarion (ALVR) rode the WiMax trend in 2004 and was Firsthand Global Technology Fund's top performer for the year. Wireless networking continues to grow at a rapid pace, driven largely by residential consumers, and we expect to see large-scale rollouts of WiMax technology by telecommunications service providers starting in 2005.

Consumers continued to purchase more goods and services via the Internet in 2004. A recent study by Goldman Sachs, Harris Interactive, and Nielsen/NetRatings reported that U.S. online retailers reported a 25% increase in holiday sales over 2003, with total sales of more than $23 billion. Consumers are increasingly comfortable with purchasing products online, which we believe bodes well for the future of e-commerce. Furthermore, with increased Internet usage has come increased Internet advertising expenditures as marketers seek to follow consumers' migration from TV to Internet viewing. Internet leaders such as Ebay and Yahoo! enjoyed solid growth in 2004.

You've no doubt noticed that I'm talking a lot about consumer electronics. That's because we are witnessing a consumer-driven market for technology products today, quite unlike the corporate IT-focused growth in the late 1990s. That's not to say that corporate spending is not significant any more. However, much of the growth in the tech sector is coming from consumer spending, while corporate America continues to absorb the technology purchases of four and five years ago.

I would be remiss if I didn't address the Funds' Achilles heel in 2004-semiconductor stocks. As many of you know, we have long been big fans of semiconductor companies because semiconductors are at the core of all electronic products today. Furthermore, owning chip stocks is often a great way to invest in a particular trend without having to own the well-known, and often over-priced, companies with their names on the boxes that are shipped to consumers.

Despite outstanding sales and earnings growth in the industry, semiconductor stocks took a beating in 2004, with investors seemingly anticipating a tougher market environment in 2005. As long-time industry participants and observers, we know that supply/demand imbalances occur often, which can drive stock prices to dizzying heights and breathtaking lows. Our long-term investment discipline, however, tells us to stick with a trend or company if we believe the trend has legs. In the case of semiconductor stocks, we know that we are currently in the midst of some oversupply situations, but we also know that markets tend to be self-correcting. We are not buying stocks because of next quarter's or next year's earnings, but because we believe in the companies' growth over the next 3 to 5 years. And we believe that economic expansion in the U.S. is just getting started.

Overall, I am encouraged by the progress being made by our portfolio companies, and I am hopeful for continued growth in 2005. We realize this has not been an easy time to be an investor in technology stocks or technology mutual funds, but we're encouraged by the healthy growth in much of the technology sector.

I wish you a very happy and prosperous 2005.

Sincerely,

2004 Annual Report - 5

SHAREHOLDER FEE EXAMPLE (Unaudited)

Example-In general, mutual fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads), redemption fees, and exchange fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, non-12b-1 service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Note that Firsthand Funds does not charge transaction fees or 12b-1 distribution and service fees, though you may incur transaction fees if you purchase shares through a broker.

The example below is based on an investment of $1,000 made at the beginning of the period and held for the entire period from July 1, 2004 to December 31, 2004.

Actual Expenses-The section of the table at right entitled "Actual" provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), and multiply the result by the number in the section entitled "Actual" under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If your account is an IRA or other tax-qualified savings plan, your expenses may also have included a $10 annual fee. In either case, the amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

Hypothetical Example for Comparison Purposes-The section of the table at right entitled "Hypothetical" provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate your actual ending account balance or the expenses you paid for the period. However, you may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table at right are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

2004 Annual Report - 6

Firsthand Technology Value Fund

	Beginning		Ending			Expenses Paid
	Account Value		Account Value			During Period*		Annualized
	7/1/04		12/31/04			7/1/04-12/31/04		Expense Ratio
Actual	$	1,000	$	992.93		$	8.64	1.91%
Hypothetical**	$	1,000	$	1,015.09		$	9.68	1.91%
Firsthand Technology Leaders Fund
	Beginning			Ending		Expenses Paid
	Account Value		Account Value			During Period*		Annualized
	7/1/04		12/31/04			7/1/04-12/31/04		Expense Ratio
Actual	$	1,000	$	1,016.38		$	9.05	1.95%
Hypothetical**	$	1,000	$	1,014.89		$	9.88	1.95%
Firsthand Technology Innovators Fund
	Beginning			Ending		Expenses Paid
	Account Value		Account Value			During Period*		Annualized
	7/1/04		12/31/04			7/1/04-12/31/04		Expense Ratio
Actual	$	1,000	$		950.05	$	8.33	1.95%
Hypothetical**	$	1,000	$	1,014.89		$	9.88	1.95%
Firsthand e-Commerce Fund
	Beginning			Ending		Expenses Paid
	Account Value		Account Value			During Period*		Annualized
	7/1/04		12/31/04			7/1/04-12/31/04		Expense Ratio
Actual	$	1,000	$	1,006.23		$	8.67	1.95%
Hypothetical**	$	1,000	$	1,014.89		$	9.88	1.95%
Firsthand Global Technology Fund
	Beginning			Ending		Expenses Paid
	Account Value		Account Value			During Period*		Annualized
	7/1/04		12/31/04			7/1/04-12/31/04		Expense Ratio
Actual	$	1,000	$	1,019.05		$	8.75	1.95%
Hypothetical**	$	1,000	$	1,014.89		$	9.88	1.95%

*	Expenses are calculated by multiplying the Fund's annualized expense ratio listed above by the average account value over the period and multiplying that number by 184/366 (to reflect the one-half year period).
**	5% return per year before expenses. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

2004 Annual Report - 7

Firsthand Technology Value Fund
Performance and Portfolio Discussion

How did the Fund perform in 2004?

In 2004, Firsthand Technology Value Fund (TVFQX) posted a 6.62% loss, versus a 9.15% gain for the Nasdaq Composite Index and a 4.11% gain for the Lipper Science and Technology Fund Index. For the six months ended December 31, 2004, Firsthand Technology Value Fund declined 0.71% as compared to 6.56% and 3.57% gains for the Nasdaq and the Lipper peer group benchmarks, respectively.

Which industries had the greatest impact on the Fund's performance?

Despite the post-election rally in the stock market, the Fund was unable to recoup its losses and trailed its benchmarks in 2004. While the portfolio's software and defense and aerospace investments were bright spots, the Fund's large weightings in semiconductors and communications equipment significantly hurt its performance.

Which individual holdings were the largest contributors to the Fund's performance?

The Fund's largest contributor in 2004 was employee Internet management software vendor Websense (WBSN). Websense's stock performance reflected strong demand for its products, as well as the investor appeal of the company's subscription-based business model, which resulted in a steady revenue stream throughout the year.

Shares of Wind River Systems (WIND) advanced 55% in 2004 as the company continued its impressive turnaround. Wind River Systems is a leading provider of embedded operating system software, which is used in a number of different markets including defense and aerospace, automotive, consumer electronics, and communications. The primary catalyst for Wind River's turnaround was the company's decision to reduce its dependence on the beleaguered telecom sector and look to other markets for growth. Other software positions helping Fund performance in 2004 included tele-com software provider Comverse Technology (CMVT), online music provider Napster (NAPS), and VeriSign (VRSN), a provider of Internet infrastructure and communications services.

Shares of FLIR Systems (FLIR) and L-3 Communications (LLL) both fared well during the period despite worries that the defense and aerospace industry would be hurt by a cutback in goverment spending. FLIR Systems makes imaging and heat-detection systems for security and surveillance applications. Similarly, L-3 Communications is a defense electronics firm that provides intelligence, surveillance, and reconnaissance (ISR) systems; aircraft modernization; and aviation products primarily to the U.S. military.

Which holdings were the greatest detractors from the Fund's performance?

Our holdings in flash memory suppliers Lexar Media (LEXR) and SanDisk (SNDK) were among the Fund's largest detractors in 2004. Flash memory supply grew faster than demand, which led to several price cuts in an attempt to balance supply and demand. The sharp decline in average selling prices took its toll on revenue growth and profit margins. Other semiconductor stocks that hurt Fund performance included Texas Instruments (TXN), Zoran (ZRAN), PMC-Sierra (PMCS), and TriQuint Semiconductor (TQNT).

Telecom equipment provider UTStarcom (UTSI) declined 40% as investors worried about slowing growth in the Chinese market, a region that accounts for the majority of UTStarcom's sales. However, UTStarcom is working to broaden its customer base and geographic distribution of revenue. In 2004, for example, the company bought Audiovox's wireless handset business to gain exposure to the Code Division Multiple Access (CDMA) cell phone market. Other communications equipment holdings that hurt fund performance included Stratex Networks (STXN) and Powerwave Technologies (PWAV).

2004 Annual Report - 8

Fund Performance and Holding Information (as of December 31, 2004)

Firsthand Technology Value Fund vs. Market Indices

	TVFQX	NASDAQ	DJIA	S&P 500
Since Inception (5/20/94)	15.14%	11.28%	12.68%	11.58%
10-Year	13.56%	11.65%	13.09%	12.05%
5-Year	-18.47%	-11.42%	0.68%	-2.30%
3-Year	-10.59%	4.20%	4.70%	3.58%
1-Year	-6.62%	9.15%	5.31%	10.88%
Q4 '04 Total Return (not annualized)	10.70%	14.87%	7.59%	9.23%

Growth of a Hypothetical $10,000 Investment

Holdings by Industry*		Top 10 Holdings**
	% of Net Assets		% of Net Assets
Semiconductors	35.4%	SanDisk Corp.	10.4%
Software	24.0%	Comverse Technology, Inc.	7.0%
Communications Equipment	15.5%	Wind River Systems, Inc.	6.1%
Defense & Aerospace	5.7%	FLIR Systems, Inc.	5.1%
Photonics	4.5%	UTStarcom, Inc.	4.8%
Internet	4.4%	Corning, Inc.	4.3%
Other	4.1%	Websense, Inc.	3.9%
Peripherals	4.0%	Western Digital Corp.	3.4%
Services	1.8%	Netflix, Inc.	3.4%
Net Cash	0.6%	Tekelec, Inc.	3.1%
* Based on percentage of net assets as of December 31, 2004.		**Top 10 stock holdings total 51.5% of net assets. These holdings are current as of December 31, 2004, and may not be representative of current or future investments.

2004 Annual Report - 9

Firsthand Technology Leaders FundPerformance and Portfolio Discussion

How did the Fund perform in 2004?

In 2004, Firsthand Technology Leaders Fund (TLFQX) posted a 2.79% loss, versus a 9.15% gain for the Nasdaq Composite Index and a 4.11% gain for the Lipper Science and Technology Fund Index. For the six months ended December 31, 2004, Firsthand Technology Leaders Fund rose 1.64% as compared to 6.56% and 3.57% gains for the Nasdaq and the Lipper peer group benchmarks, respectively.

Which industries had the greatest impact on the Fund's performance?

Firsthand Technology Leaders Fund underperformed its benchmarks in 2004, as the portfolio's exposure to the software industry was not enough to offset the poor results contributed by the Fund's semiconductor and networking positions.

Which individual holdings were the largest contributors to the Fund's performance?

For the period, the Fund's top contributor was wireless communications firm QUALCOMM (QCOM). QUALCOMM, which licenses its Code Division Multiple Access (CDMA) wireless technology and makes chips for cell phones, benefitted from record sales of cell phones in 2004 as consumers rapidly replaced older phones with new ones equipped with color screens and digital cameras. In the Internet segment, shares of eBay (EBAY) rose 80% in 2004 as business remained strong for the online auctioneer. During the year, the eBay franchise continued to grow as the company acquired several smaller firms in a bid to expand its international presence.

Among our software holdings, Adobe Systems (ADBE) enjoyed another solid year. The software giant continued to set the standard in both the professional and consumer markets with its Acrobat and Illustrator applications that enable users to create, publish, and print digital content. Growth in digital camera sales also helped promote sales of photo imaging programs like Adobe Photoshop. Also boosting Fund performance in 2004 were holdings in anti-virus software giant Symantec (SYMC) and Business Objects (BOBJ), a provider of business intelligence software that the Fund began buying in August.

Which holdings were the greatest detractors from the Fund's performance?

Technology bellwethers Cisco Systems (CSCO) and Intel (INTC) each experienced reversals of fortune in 2004. Increased competition from rival Juniper Networks (JNPR) had investors concerned that Cisco was struggling to maintain its stronghold on the networking market. Cisco is the dominant supplier of routers, switches, and software that enable computer networks to communicate over the Internet. However, a price war between the two companies put pressure on Cisco's market share in its core router business and ended up costing the company two key customers-America Online and China Telecom-in 2004.

In the case of Intel, the company suffered several uncharacteristic setbacks in 2004, including execution missteps and product delays, that contributed to the company's weak showing. Rising inventories also hurt the company by forcing it to take large inventory reserves and accept lower prices, both of which put pressure on profits. Similar inventory problems befell other semiconductor companies including flash memory provider SanDisk (SNDK), chipmaker Texas Instruments (TXN), and Altera (ALTR) and Xilinx (XLNX), makers of programmable logic devices.

2004 Annual Report - 10

Fund Performance and Holding Information (as of December 31, 2004)

Firsthand Technology Leaders Fund vs. Market Indices

	TLFQX	NASDAQ	DJIA	S&P 500
Since Inception (12/10/97)	7.80%	4.63%	6.20%	4.66%
5-Year	-17.81%	-11.42%	0.68%	-2.30%
3-Year	-3.88%	4.20%	4.70%	3.58%
1-Year	-2.79%	9.15%	5.31%	10.88%
Q4 '04 Total Return (not annualized)	13.87%	14.87%	7.59%	9.23%

Growth of a Hypothetical $10,000 Investment

Holdings by Industry*		Top 10 Holdings**
	% of Net Assets		% of Net Assets
Software	33.6%	VERITAS Software Corp.	6.0%
Semiconductors	27.8%	SanDisk Corp.	5.8%
Internet	7.7%	Business Objects SA - ADR	5.0%
Semiconductor Equipment	7.0%	Cisco Systems, Inc.	4.9%
Communications Equipment	5.3%	Amdocs Ltd.	4.7%
Networking	4.9%	QUALCOMM, Inc.	4.7%
Media	4.3%	Mercury Interactive Corp.	4.6%
Peripherals	3.3%	Adobe Systems, Inc.	4.4%
Other Electronics	2.9%	Texas Instruments, Inc.	4.4%
Photonics	2.8%	Taiwan Semiconductor
Net Cash	0.4%	Manufacturing Co. - ADR	4.3%
* Based on percentage of net assets as of December 31, 2004.		**Top 10 stock holdings total 48.8% of net assets. These holdings are current as of December 31, 2004, and may not be representative of current or future investments.

2004 Annual Report - 11

Firsthand Technology Innovators Fund
Performance and Portfolio Discussion

How did the Fund perform in 2004?

In 2004, Firsthand Technology Innovators Fund (TIFQX) posted a 12.80% loss, versus a 9.15% gain for the Nasdaq Composite Index and a 4.11% gain for the Lipper Science and Technology Fund Index. For the six months ended December 31, 2004, Firsthand Technology Innovators Fund declined 5.00% as compared to 6.56% and 3.57% gains for the Nasdaq and the Lipper peer group benchmarks, respectively.

Which industries had the greatest impact on the Fund's performance?

The Fund underperformed its benchmarks by a substantial margin primarily due to its sizable exposure to the semiconductor industry. Firsthand Technology Innovators Fund has traditionally held a large percentage of its assets in semiconductor stocks because semiconductors are the cornerstone of the electronics industry, integral to nearly every electronic device today. While most of our semiconductor holdings were a drag on Fund performance, there were a few standouts in the chip industry that managed to buck the trend.

Which individual holdings were the largest contributors to the Fund's performance?

The buzz about downloading music got louder in 2004 and Napster (NAPS) was one of the beneficiaries of this growing trend. Napster offers a subscription service that allows users to either listen to or download music over the Internet. Shares of Napster rallied toward the end of the year after the company chose to sell its software division to focus solely on its online music business.

Early in the year we realized a nice gain in shares of memory chip designer Monolithic System Technology (MOSY), after Synopsys (SNPS) announced its intention to acquire the company at a hefty premium. Closing our position in Monolithic turned out to be the right move as Synopsys subsequently walked away from the proposed deal two months later, sending Monolithic's stock price down. Other portfolio holdings that positively contributed to Fund performance included electronic design automation software maker PDF Solutions (PDFS), embedded microprocessor designer MIPS Technologies (MIPS), and Witness Systems (WITS), a provider of customer and workforce management software for call centers.

Which holdings were the greatest detractors from the Fund's performance?

The Fund's biggest money-loser during the period was flash memory supplier Lexar Media (LEXR). Removable flash memory cards have rapidly become the primary form of portable storage for various electronic devices, including digital cameras, PDAs, and MP3 players. While demand for flash memory remains strong, an industry-wide oversupply situation for flash memory in 2004 led to a sharp decline in average selling prices, which hurt Lexar's earnings and revenue growth.

The disk-drive industry also experienced similar problems with high inventory levels that resulted in the top three disk-drive manufacturers engaging in a brutal price war to clear out excess inventory. This not only negatively impacted the major drive manufacturers but also smaller component suppliers, including Intevac (IVAC). Other disappointing stocks included microdisplay manufacturer Kopin (KOPN), camera-chip maker OmniVision Technologies (OVTI), and flat-panel component suppliers Applied Films (AFCO) and Universal Display (PANL).

2004 Annual Report - 12

Fund Performance and Holding Information (as of December 31, 2004)

Firsthand Technology Innovators Fund vs. Market Indices

	TIFQX	NASDAQ	DJIA	S&P 500
Since Inception (5/20/98)	4.67%	2.88%	4.63%	2.85%
5-Year	-23.01%	-11.42%	0.68%	-2.30%
3-Year	-14.98%	4.20%	4.70%	3.58%
1-Year	-12.80%	9.15%	5.31%	10.88%
Q4 '04 Total Return (not annualized)	14.94%	14.87%	7.59%	9.23%

Growth of a Hypothetical $10,000 Investment

Holdings by Industry*		Top 10 Holdings**
	% of Net Assets		% of Net Assets
Semiconductors	28.0%	PDF Solutions, Inc.	9.2%
Communications Equipment	13.4%	Napster, Inc.	5.9%
Other Electronics	10.1%	Avici Systems, Inc.	4.7%
Electronic Design Automation	9.1%	OmniVision Technologies, Inc.	4.5%
Photonics	8.1%	Power Integrations, Inc.	4.3%
Software	8.0%	Aeroflex, Inc.	4.2%
Intellectual Property	6.9%	Lexar Media, Inc.	4.0%
Services	5.1%	Vyyo, Inc.	3.8%
Networking	3.2%	Kopin Corp.	3.5%
Computer Storage Devices	2.2%	Applied Films Corp.	3.4%
Other	1.2%
Net Cash	4.7%
* Based on percentage of net assets as of December 31, 2004.		**Top 10 stock holdings total 47.5% of net assets. These holdings are current as of December 31, 2004, and may not be representative of current or future investments.

2004 Annual Report - 13

Firsthand e-Commerce FundPerformance and Portfolio Discussion

How did the Fund perform in 2004?

In 2004, Firsthand e-Commerce Fund (TEFQX) posted a 5.56% gain, versus a 9.15% gain for the Nasdaq Composite Index and a 4.11% gain for the Lipper Science and Technology Fund Index. For the six months ended December 31, 2004, Firsthand e-Commerce Fund rose 0.62% as compared to 6.56% and 3.57% gains for the Nasdaq and the Lipper peer group benchmarks, respectively.

Which industries had the greatest impact on the Fund's performance?

The Fund's exposure to the software industry and Internet stocks helped the Fund finish 2004 in positive territory, ahead of its peer-group benchmark. We continue to believe that e-commerce is still in its infancy, accounting for just two percent of all U.S. retail sales, according to the U.S. Census Bureau. We believe this limited penetration underscores the vast growth potential for online commerce.

Which individual holdings were the largest contributors to the Fund's performance?

Employee Internet management software vendor Websense (WBSN) was the Fund's best performer in 2004. The company's software enables employers to monitor Internet usage by employees and to block access to inappropriate websites, thereby limiting the potential for misuse of the Internet. Despite a sluggish corporate IT spending environment, Websense's business has thrived because the company offers its customers an affordable, easy-to-implement solution to Internet management in the workplace. Other software stocks that helped Fund performance included anti-virus software maker Symantec (SYMC), online music provider Napster (NAPS), and Macromedia (MACR), a provider of Internet software development tools and applications.

With more households shifting to faster broadband connections and consumers becoming increasingly comfortable with shopping online, Internet stocks generally enjoyed another good year. Solid growth in online sales led to strong gains for many of the Fund's Internet holdings, including eBay (EBAY) and Yahoo! (YHOO). Yahoo! also benefitted from surging demand in online advertising as major brand advertisers allocated more of their budgets to the Web.

Which holdings were the greatest detractors from the Fund's performance?

One of the Fund's larger losses was in online DVD rental company Netflix (NFLX). Despite having more than 2.5 million subscribers, Netflix's business model has very few barriers to entry and has attracted several new competitors. With Wal-Mart, Blockbuster, and possibly Amazon.com entering the fray, Netflix lowered its monthly fee to attract new customers and retain current ones. However, investors were not happy about the potential revenue loss with the lower subscriber fee and, as a result, shares of Netflix plummeted more than 40% on the day of the announcement.

Chordiant Software (CHRD) was also a significant drag on Fund performance in 2004. Chordiant makes software that enables various departments within a company to share information and collaborate on projects. Shares of Chordiant dropped after the company reported disappointing license revenue growth in Q3. License revenue is often seen as a key measure of business strength at software companies. Other portfolio holdings that disappointed during 2004 included data storage management firm VERITAS Software (VRTS), BEA Systems (BEAS), and e-commerce conglomerate IAC/InterActiveCorp (IACI), parent company of popular Internet sites such as Expedia, Ticketmaster, and Hotwire.

2004 Annual Report - 14

Fund Performance and Holding Information (as of December 31, 2004)

Firsthand e-Commerce Fund vs. Market Indices

	TEFQX	NASDAQ	DJIA	S&P 500
Since Inception (9/30/99)	-19.25%	-3.99%	2.77%	0.43%
5-Year	-26.20%	-11.42%	0.68%	-2.30%
3-Year	-1.01%	4.20%	4.70%	3.58%
1-Year	5.56%	9.15%	5.31%	10.88%
Q4 '04 Total Return (not annualized)	16.19%	14.87%	7.59%	9.23%

Growth of a Hypothetical $10,000 Investment

Holdings by Industry*		Top 10 Holdings**
	% of Net Assets		% of Net Assets
Software	39.0%	Websense, Inc.	11.0%
Internet	30.3%	Yahoo! Inc.	6.8%
Services	20.4%	Macromedia, Inc.	5.5%
Financial	2.9%	CNET Networks, Inc.	5.2%
Other	1.6%	WebEx Communications, Inc.	4.9%
Net Cash	5.8%	IAC/InterActiveCorp	4.3%
		Napster, Inc.	4.3%
		eBay, Inc.	3.7%
		Netflix, Inc.	3.6%
		Monster Worldwide, Inc.	3.6%
* Based on percentage of net assets as of December 31, 2004.		**Top 10 stock holdings total 52.9% of net assets. These holdings are current as of December 31, 2004, and may not be representative of current or future investments.

2004 Annual Report - 15

Firsthand Global Technology FundPerformance and Portfolio Discussion

How did the Fund perform in 2004?

In 2004, Firsthand Global Technology Fund (GTFQX) posted a 7.16% loss, versus a 9.15% gain for the Nasdaq Composite Index and a 4.11% gain for the Lipper Science and Technology Fund Index. For the six months ended December 31, 2004, Firsthand Global Technology Fund rose 1.90% as compared to 6.56% and 3.57% gains for the Nasdaq and the Lipper peer group benchmarks, respectively.

Which industries had the greatest impact on the Fund's performance?

The Fund underperformed its benchmarks during 2004 due to its weightings in the semiconductor and telecommunications industries. Impressive year-over-year growth in worldwide semiconductor sales reflected continued economic growth, especially in the U.S. and China. However, despite such strong sales, semiconductor stocks slipped as rising inventories squeezed profit margins and negatively impacted chipmakers' earnings.

Which holdings were the largest contributors to the Fund's performance?

Israel-based Alvarion (ALVR) saw business improve after an increase in demand for the company's wireless broadband equipment, such as base stations that are used to make voice and data transmission possible over wireless networks. Alvarion is also enjoying modest success in rolling out WiMax networks to rural and urban areas. WiMax is a technology that offers wireless data access rates of up to 75 megabits per second-compared with 11 megabits per second for a typical Wi-Fi network-over larger distances.

Standouts in the software industry included telecom software provider Comverse Technology (CMVT), customer management and billing software supplier Amdocs (DOX), and Cognos (COGN), a provider of business intelligence (BI) software. Business intelligence is a broad category of software applications and technologies for gathering, storing, and analyzing data to help corporations make better business decisions. Cognos' prospects have brightened as demand for BI software has increased over the last few years.

Which holdings were the greatest detractors from the Fund's performance?

After enjoying a robust year in 2003, UTStarcom (UTSI) reversed course and ended 2004 as the Fund's worst performer. UTStarcom provides telecom equipment for wireline and wireless networks in China and other emerging markets. Most of UTStarcom's troubles started in late July, when the company missed second-quarter estimates due to supply-chain problems that crimped the company's profit margins.

Our positions in Amkor Technology (AMKR), ASML Holding (ASML), and STMicroelectronics (STM) all declined as the outlook for continued robust growth in 2005 dimmed. Other semiconductor positions that hurt Fund performance included camera-chip maker OmniVision Technologies (OVTI), microdisplay manufacturer Kopin (KOPN), and semiconductor manufacturer Zoran (ZRAN). The Fund also realized a sizable loss after closing its position in disk-drive manufacturer Maxtor (MXO).

2004 Annual Report - 16

Fund Performance and Holding Information (as of December 31, 2004)

Firsthand Global Technology Fund vs. Market Indices

	GTFQX	NASDAQ	DJIA	S&P 500
Since Inception (9/29/00)	-18.00%	-11.21%	2.35%	-2.37%
3-Year	-5.92%	4.20%	4.70%	3.58%
1-Year	-7.16%	9.15%	5.31%	10.88%
Q4 '04 Total Return (not annualized)	17.91%	14.87%	7.59%	9.23%

Growth of a Hypothetical $10,000 Investment

Holdings by Industry*		Top 10 Holdings**
	% of Net Assets		% of Net Assets
Communications Equipment	21.2%	UTStarcom, Inc.	8.0%
Software	19.9%	Alvarion Ltd.	6.1%
Semiconductors	18.4%	Samsung Electronics Co.,
Other Electronics	15.6%	Ltd. - GDR	5.9%
Services	6.9%	Ceragon Networks Ltd.	5.5%
Semiconductor Equipment	6.8%	Fujitsu Ltd.	4.5%
Electronic Design Automation	4.4%	PDF Solutions, Inc.	4.4%
Peripherals	3.6%	Comverse Technology, Inc.	4.1%
Internet	1.6%	Amdocs Ltd.	4.0%
Other	0.4%	TDK Corp.	4.0%
Net Cash	1.2%	Western Digital Corp.	3.6%
* Based on percentage of net assets as of December 31, 2004.		**Top 10 stock holdings total 50.1% of net assets. These holdings are current as of December 31, 2004, and may not be representative of current or future investments.

2004 Annual Report - 17

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees
Firsthand Funds
San Jose, California

We have audited the accompanying statements of assets and liabilities of Firsthand Funds comprising, respectively, Firsthand Technology Value Fund, Firsthand Technology Leaders Fund, Firsthand Technology Innovators Fund, Firsthand e-Commerce Fund, and Firsthand Global Technology Fund, including the portfolios of investments as of December 31, 2004, and the related statements of operations for the year then ended, changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Firsthand Funds as of December 31, 2004, the results of their operations, the changes in their net assets, and the financial highlights for the periods referred to above, in conformity with accounting principles generally accepted in the United States of America.

TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 21, 2005

2004 Annual Report - 18

Firsthand Technology Value Fund
PORTFOLIO OF INVESTMENTS
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
COMMON STOCK			99.2%			$   582,523,492
	(Cost $952,866,377)
	ADVANCED MATERIALS		0.9%			5,000,000
	*	Universal Chemical Technologies,
		Inc. - B (2)		500,000		5,000,000
	COMMUNICATIONS		0.6%			3,744,862
	*	ViaSat, Inc.		154,300		3,744,862
	COMMUNICATIONS EQUIPMENT		15.4%			90,351,612
	*	Anaren, Inc. (1)		1,111,900		14,410,224
		Harris Corp.		50,000		3,089,500
		Motorola, Inc.		690,200		11,871,440
	*	REMEC, Inc.		240,000		1,730,400
		SpectraLink Corp.		180,000		2,552,400
	*	Stratex Networks, Inc.		4,687,036		10,592,701
	*	Tekelec, Inc.		875,800		17,901,352
	*	UTStarcom, Inc.		1,273,300		28,203,595
	DEFENSE & AEROSPACE		5.7%			33,681,574
	*	FLIR Systems, Inc.		470,600		30,019,574
		L-3 Communications Holdings, Inc.		50,000		3,662,000
	INTELLECTUAL PROPERTY		0.9%			5,072,515
	*	Silicon Genesis Corp. - 1-D (1) (2)		850,830		749,751
	*	Silicon Genesis Corp. - 1-E (1) (2)		4,071,226		4,315,500
	*	Silicon Genesis Corp. -
		Common Stock (1) (2)		726,424		7,264
	INTERNET		4.4%			25,695,740
	*	Akamai Technologies, Inc.		458,000		5,967,740
	*	Netflix, Inc.		1,600,000		19,728,000
	NETWORKING		1.0%			5,983,088
	*	Caspian Networks, Inc. -
		Common Stock (2)		33,781		0
	*	Cisco Systems, Inc.		200,000		3,860,000
	*	IP Unity, Inc. - C (2)		1,104,265		1,792,863
	*	IP Unity, Inc. - E (2)		193,042		313,307
	*	Polaris Networks, Inc. - A (2)		297,848		16,918
	OTHER ELECTRONICS		0.4%			2,586,350
	*	NanoMuscle, Inc. - A-1 (2)		1,250,000		0

*Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 19

Firsthand Technology Value Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

				MARKET
		PERCENT	SHARES	VALUE
*	NanoMuscle, Inc. - Common Stock (2)		1,250,000	$		0
	PerkinElmer, Inc.		115,000		2,586,350
PERIPHERALS		4.0%			23,319,200
*	Electronics For Imaging, Inc.		200,000		3,482,000
*	Western Digital Corp.		1,830,000		19,837,200
PHOTONICS		4.5%			26,427,552
*	Celox Networks, Inc. - A-1 (2)		1,000,000			0
*	Celox Networks, Inc. - Common
	Stock (2)		138,121			0
*	Corning, Inc.		2,150,000		25,305,500
*	Luminous Networks, Inc. - D (2)		868,710		937,642
*	Luminous Networks, Inc. - E (2)		434,724		184,410
*	Maple Optical Systems, Inc. -
	A-1 (1) (2)		10,352,054			0
SEMICONDUCTOR EQUIPMENT		0.2%			1,018,000
*	Asyst Technologies, Inc.		200,000		1,018,000
SEMICONDUCTORS		35.4%			208,049,947
*	Aeroflex, Inc.		1,250,600		15,157,272
*	Applied Micro Circuits Corp.		1,499,900		6,314,579
*	AuthenTec, Inc. - C (2)		1,472,495		1,179,881
*	AuthenTec, Inc. - D (2)		290,958		232,766
	Celeritek, Inc.		232,200		355,266
*	Clarisay, Inc. - B (1) (2)		2,605,306			0
*	Clarisay, Inc. - C (1) (2)		7,194,244			0
*	Freescale Semiconductor, Inc. - B		76,208		1,399,179
*	Global Locate, Inc. - A (1) (2)		6,030,896		7,794,209
*	Global Locate, Inc. - C (1) (2)		1,111,111		1,000,000
*	Global Locate, Inc. - D (1) (2)		555,555		500,000
*	Kopin Corp.		299,100		1,157,517
*	Lexar Media, Inc.		1,899,200		14,889,728
*	Marvell Technology Group Ltd.		500,000		17,735,000
*	PMC-Sierra, Inc.		1,155,700		13,001,625
*	SanDisk Corp.		2,437,400		60,861,878
*	Skyworks Solutions, Inc.		898,300		8,470,969
	STMicroelectronics N.V. - ADR		783,400		15,135,288
	Texas Instruments, Inc.		690,000		16,987,800
*	TranSwitch Corp.		3,593,000		5,533,220
*	TriQuint Semiconductor, Inc.		2,332,400		10,379,180
*	Zoran Corp.		860,500		9,964,590

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 20

Firsthand Technology Value Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
	SERVICES		1.8%			$   10,662,810
	*	Anteon International Corp.		120,900		5,060,874
	*	Intrado, Inc.		309,100		3,740,110
	*	TeleCommunication Systems, Inc. - A		557,600		1,861,826
	SOFTWARE		24.0%			140,930,242
	*	Comverse Technology, Inc.		1,670,900		40,853,505
	*	Concord Communications, Inc. (1)		1,089,300		12,069,444
	*	Napster, Inc. (1) (3)		1,750,000		16,450,000
		SAP AG - ADR		100,000		4,421,000
	*	VERITAS Software Corp.		312,900		8,933,295
	*	Websense, Inc.		446,900		22,666,768
	*	Wind River Systems, Inc.		2,622,600		35,536,230
WARRANTS			0.2%			929,009
	(Cost $192)
	ADVANCED MATERIALS		0.0%			200
	*	Universal Chemical Technologies,
		Inc. - B Warrants (2)		200,000		200
	COMMUNICATIONS EQUIPMENT		0.1%			470,734
	*	Lucent Technologies, Inc. - Warrants		297,933		470,734
	INTELLECTUAL PROPERTY		0.1%			334,436
	*	Silicon Genesis Corp. - 1-E
		Warrants (1) (2)		1,257,859		334,339
	*	Silicon Genesis Corp. - Common
		Stock Warrants (1) (2)		59,147		59
	*	Silicon Genesis Corp. - Common
		Stock Warrants (1) (2)		37,982		38
	NETWORKING		0.0%			145
	*	IP Unity, Inc. - E Warrants (2)		69,496		69
	*	Polaris Networks, Inc. - Convertible
		Warrants (2)		75,712		76
	OTHER ELECTRONICS		0.0%			0
	*	NanoMuscle, Inc. - B-1 Warrants (2)		306,757		0
	PHOTONICS		0.0%			0
	*	Celox Networks, Inc. - A-1
		Warrants (2)		500,000		0

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 21

Firsthand Technology Value Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

				SHARES/
				PRINCIPAL			MARKET
			PERCENT	AMOUNT			VALUE
	*	Luminous Networks, Inc. - D
		Warrants (2)		144,785	$		0
SEMICONDUCTORS			0.0%			123,494
	*	AuthenTec, Inc. - C Warrants (2)		392,665		117,835
	*	Clarisay, Inc. Warrants
		06/03/2005-
		11/10/2005 (1) (2)		2,350,000			0
	*	Global Locate, Inc. - Board
		Warrants (1) (2)		18,750			94
	*	Global Locate, Inc. - Board
		Warrants (1) (2)		75,000			375
	*	Global Locate, Inc. - Board
		Warrants (1) (2)		75,000			375
	*	Global Locate, Inc. - C
		Warrants (1) (2)		370,370		3,704
	*	Global Locate, Inc. - D
		Warrants (1) (2)		111,111		1,111
CONVERTIBLE BONDS			0.0%			151,435
(Cost $2,900,074)
NETWORKING			0.0%			151,435
		Polaris Networks, Inc. 10.00% (2)		100,949		100,949
		Polaris Networks, Inc.,
		Escrow 0.56% (2)		50,486		50,486
OTHER ELECTRONICS			0.0%				0
	*	NanoMuscle, Inc. 8.00%
		02/16/2005 (2)		398,639			0
SEMICONDUCTORS			0.0%				0
	*	Clarisay, Inc. 8.00% 06/03/2005-
		11/10/2005 (1) (2)		2,350,000			0
TOTAL INVESTMENT SECURITIES			99.4%			583,603,936
(Cost $955,766,643)
OTHER ASSETS IN EXCESS OF LIABILITIES			0.6%			3,326,005
NET ASSETS			100.0%		$	586,929,941

*	Non-income producing
(1)	Affiliated issuer
(2)	Restricted security
(3)	Napster, Inc. has the right to put a restriction of public sale on 800,000 shares of the Fund's Napster,
	Inc. holding. As of December 31, 2004, there are no restrictions on the Fund's shares of Napster, Inc.
ADR	American Depositary Receipts

see accompanying notes to financial statements

2004 Annual Report - 22

Firsthand Technology Leaders Fund
PORTFOLIO OF INVESTMENTS
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
COMMON STOCK			99.4%			$      113,258,833
	(Cost $114,741,939)
	COMMUNICATIONS EQUIPMENT		5.1%			5,760,698
		Nokia Corp. - ADR		29,400		460,698
		QUALCOMM, Inc.		125,000		5,300,000
	INTERNET		7.7%			8,808,010
	*	eBay, Inc.		40,000		4,651,200
	*	IAC/InterActiveCorp		150,500		4,156,810
	MEDIA		4.3%			4,888,331
	*	Pixar Animation Studios		57,100		4,888,331
	NETWORKING		4.9%			5,575,770
	*	Cisco Systems, Inc.		288,900		5,575,770
	OTHER ELECTRONICS		2.9%			3,298,230
	*	Agilent Technologies, Inc.		136,856		3,298,230
	PERIPHERALS		3.3%			3,772,519
	*	EMC Corp.		253,700		3,772,519
	PHOTONICS		2.8%			3,249,697
	*	Corning, Inc.		276,100		3,249,697
	SEMICONDUCTOR EQUIPMENT		7.0%			8,004,771
	*	Applied Materials, Inc.		138,800		2,373,480
	*	ASML Holding N.V.		130,300		2,073,073
	*	KLA-Tencor Corp.		44,800		2,086,784
	*	Teradyne, Inc.		86,200		1,471,434
	SEMICONDUCTORS		27.8%			31,655,919
	*	Altera Corp.		188,000		3,891,600
		Intel Corp.		97,300		2,275,847
		Samsung Electronics
		Co., Ltd. - GDR (144A)		22,600		4,917,552
	*	SanDisk Corp.		264,800		6,612,056

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 23

Firsthand Technology Leaders Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

				MARKET
		PERCENT	SHARES	VALUE
	Taiwan Semiconductor
	Manufacturing Co. - ADR		580,592	$	4,929,226
	Texas Instruments, Inc.		201,650		4,964,623
	Xilinx, Inc.		137,100		4,065,015
SOFTWARE		33.6%			38,244,888
	Adobe Systems, Inc.		80,500		5,050,570
*	Amdocs Ltd.		203,600		5,344,500
*	BEA Systems, Inc.		276,280		2,447,841
*	Business Objects SA - ADR		225,100		5,704,034
*	Mercury Interactive Corp.		113,700		5,179,035
	Microsoft Corp.		78,900		2,107,419
	SAP AG - ADR		105,300		4,655,313
*	Symantec Corp.		35,100		904,176
*	VERITAS Software Corp.		240,000		6,852,000
WARRANTS		0.2%			195,109
(Cost $0)
COMMUNICATIONS EQUIPMENT		0.2%			195,109
*	Lucent Technologies, Inc.		123,487		195,109
TOTAL INVESTMENT SECURITIES		99.6%			113,453,942
(Cost $114,741,939)
OTHER ASSETS IN EXCESS OF LIABILITIES		0.4%			460,907
NET ASSETS		100.0%		$	113,914,849

*         Non-income producing
ADR   American Depositary Receipts
GDR   Global Depositary Receipts

see accompanying notes to financial statements

2004 Annual Report - 24

Firsthand Technology Innovators Fund
PORTFOLIO OF INVESTMENTS
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
COMMON STOCK			94.2%			$        54,751,851
	(Cost $78,644,705)
	COMMUNICATIONS EQUIPMENT		13.4%			7,775,471
	*	Airspan Networks, Inc.		284,000		1,542,120
	*	Finisar Corp.		536,500		1,223,220
	*	Powerwave Technologies, Inc.		139,400		1,182,112
	*	Proxim Corp. - A		21,630		88,467
		SpectraLink Corp.		106,700		1,513,006
	*	Vyyo, Inc.		258,600		2,226,546
	COMPUTER STORAGE DEVICES		2.2%			1,281,800
	*	M-Systems Flash Disk Pioneers Ltd.		65,000		1,281,800
	ELECTRONIC DESIGN AUTOMATION		9.1%			5,319,522
	*	PDF Solutions, Inc.		330,200		5,319,522
	INTELLECTUAL PROPERTY		6.9%			4,003,049
	*	MIPS Technologies, Inc.		200,000		1,970,000
	*	Silicon Genesis Corp. - 1-C (1) (2)		82,914		300,779
	*	Silicon Genesis Corp. - 1-E (1) (2)		1,633,254		1,731,249
	*	Silicon Genesis Corp. -
		Common Stock (1) (2)		102,135		1,021
	NETWORKING		3.2%			1,854,975
	*	IP Unity, Inc. - C (2)		1,117,957		1,815,093
	*	Polaris Networks, Inc. - A (2)		702,152		39,882
	OTHER ELECTRONICS		10.1%			5,870,440
	*	Applied Films Corp.		92,800		2,000,768
	*	Intevac, Inc.		263,700		1,993,572
	*	LeapFrog Enterprises, Inc.		40,000		544,000
	*	Microvision, Inc.		190,300		1,332,100
	*	NanoMuscle, Inc. - A-1 (2)		1,250,000		0
	*	NanoMuscle, Inc. - Common Stock (2)		1,250,000		0
	PERIPHERALS		1.2%			720,000
	*	Universal Display Corp.		80,000		720,000

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 25

Firsthand Technology Innovators Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
	PHOTONICS		8.1%			$      4,681,791
	*	Avici Systems, Inc.		300,000		2,715,000
	*	Luminous Networks, Inc. - D (2)		1,522,719		1,643,547
	*	Luminous Networks, Inc. - E (2)		762,008		323,244
	*	Maple Optical Systems, Inc. -
		A-1 (1) (2)		9,647,945		0
	SEMICONDUCTORS		27.9%			16,199,118
	*	Aeroflex, Inc.		202,700		2,456,723
	*	Agere Systems, Inc. - A		500,000		685,000
	*	AuthenTec, Inc. - C (2)		736,248		589,941
	*	Clarisay, Inc. - B (1) (2)		2,861,519		0
	*	Kopin Corp.		518,500		2,006,595
	*	Lexar Media, Inc.		296,000		2,320,640
	*	O2Micro International Ltd.		35,000		400,400
	*	OmniVision Technologies, Inc.		141,000		2,587,350
	*	Power Integrations, Inc.		127,300		2,517,994
	*	Silicon Optix, Inc. - B (2)		1,111,111		1,000,000
	*	Volterra Semiconductor Corp.		30,000		664,650
	*	Zoran Corp.		83,750		969,825
	SERVICES		4.1%			2,392,549
	*	Innovion Corp. - C (1) (2)		1,500,000		1,489,350
	*	TeleCommunication Systems, Inc. - A		270,500		903,199
	SOFTWARE		8.0%			4,653,136
	*	Napster, Inc.		366,700		3,446,980
	*	Verint Systems, Inc.		33,200		1,206,156
WARRANTS			0.1%			60,464
(Cost $0)
	INTELLECTUAL PROPERTY		0.0%			944
	*	Silicon Genesis Corp. - 1-E (1) (2)		94,339		944
	PHOTONICS		0.0%			0
	*	Luminous Networks, Inc. - D
		Warrants (2)		253,787		0
	SEMICONDUCTORS		0.1%			58,917
	*	AuthenTec, Inc. - C Warrants (2)		196,333		58,917

*  Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 26

Firsthand Technology Innovators Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

			SHARES/
			PRINCIPAL	MARKET
		PERCENT	AMOUNT	VALUE
*	Clarisay, Inc. Warrants
	05/08/2005-12/31/2010 (1) (2)		1,259,290	$                     0
SERVICES		0.0%		603
*	Innovion Corp. Warrants (1) (2)		602,577	603
CONVERTIBLE BONDS		1.0%		602,577
(Cost $1,752,577)
SEMICONDUCTORS		0.0%		0
*	Clarisay, Inc. 8.00% 05/08/2005-
	10/10/2005 (1) (2)		1,150,000	0
SERVICES		1.0%		602,577
*	Innovion Corp. 8.00% 03/07/2005
	(1) (2)		602,577	602,577
CASH EQUIVALENTS		4.1%		2,369,786
(Cost $2,369,786)
SSgA Prime Money Market Portfolio			2,340,094	2,340,094
State Street Bank and Trust Company
	Repurchase Agreement, 1.300%
	dated 12/31/2004, to be
	repurchased at $29,695 on
	01/03/2005, collateralized by
	$30,000 U.S. Treasury Bond,
	10.375% maturing 11/15/2012
	(value $36,594)		29,692	29,692
TOTAL INVESTMENT SECURITIES		99.4%		57,784,678
(Cost $82,767,068)
OTHER ASSETS IN EXCESS OF LIABILITIES		0.6%		371,371
NET ASSETS		100.0%		$      58,156,049

*	Non-income producing
(1)	Affiliated issuer
(2)	Restricted security

see accompanying notes to financial statements

2004 Annual Report - 27

Firsthand e-Commerce Fund
PORTFOLIO OF INVESTMENTS
December 31, 2004

					MARKET
			PERCENT	SHARES	VALUE
COMMON STOCK			94.2%			$    52,328,059
	(Cost $ 45,614,896)
	BROADCASTING & CABLE TV		0.6%			346,725
	*	Liberty Media International, Inc. - A		7,500		346,725
	FINANCIAL		2.9%			1,608,000
	*	Ameritrade Holding Corp.		50,000		711,000
	*	E*TRADE FINANCIAL Corp.		60,000		897,000
	INTERNET		30.3%			16,802,173
	*	1-800-FLOWERS.COM, Inc. - A		10,000		84,100
	*	Akamai Technologies, Inc.		22,500		293,175
	*	Amazon.com, Inc.		30,000		1,328,700
	*	Ask Jeeves, Inc.		10,000		267,500
	*	Autobytel, Inc.		60,000		362,400
	*	Drugstore.com, Inc.		222,700		757,180
	*	eBay, Inc.		17,600		2,046,528
	*	IAC/InterActiveCorp		86,700		2,394,654
	*	LivePerson, Inc.		100,000		314,000
	*	Monster Worldwide, Inc.		58,900		1,981,396
	*	Netflix, Inc.		161,200		1,987,596
	*	Time Warner, Inc.		62,600		1,216,944
	*	Yahoo! Inc.		100,000		3,768,000
	NETWORKING		1.0%			579,000
	*	Cisco Systems, Inc.		30,000		579,000
	SERVICES		20.4%			11,307,020
	*	Anteon International Corp.		11,700		489,762
	*	CNET Networks, Inc.		255,400		2,868,142
		Fair, Issac Corp.		15,000		550,200
		First Data Corp.		35,000		1,488,900
	*	PEC Solutions, Inc.		115,400		1,635,218
	*	Sportsman' s Guide, Inc.		15,000		337,500
	*	WebEx Communications, Inc.		114,100		2,713,298
	*	WebMD Corp.		150,000		1,224,000
	SOFTWARE		39.0%			21,685,141
	*	BEA Systems, Inc.		193,100		1,710,866
	*	Chordiant Software, Inc.		588,285		1,341,290
	*	Cognizant Technology Solutions
		Corp. - A		45,900		1,942,947
	*	Digital Insight Corp.		65,000		1,196,000

*  Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 28

Firsthand e-Commerce Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

			SHARES/
			PRINCIPAL		MARKET
		PERCENT	AMOUNT		VALUE
*	Macromedia, Inc.		98,900	$	3,077,768
*	Mercury Interactive Corp.		15,700		715,135
*	Napster, Inc.		254,500		2,392,300
*	Novell, Inc.		122,600		827,550
*	Red Hat, Inc.		20,000		267,000
*	Symantec Corp.		14,000		360,640
*	VERITAS Software Corp.		61,900		1,767,245
*	Websense, Inc.		120,000		6,086,400
CASH EQUIVALENTS		5.5%			3,069,709
(Cost $3,069,709)
SSgA Prime Money Market Portfolio			2,235,592		2,235,592
State Street Bank and Trust Company
	Repurchase Agreement, 1.300%
	dated 12/31/2004, to be
	repurchased at $834,207 on
	01/03/2005, collateralized by
	$790,000 U.S. Treasury Note,
	5.000% maturing 08/15/2011
	(value $869,988)		834,117		834,117
TOTAL INVESTMENT SECURITIES		99.7%			55,397,768
(cost $48,684,605)
OTHER ASSETS IN EXCESS OF LIABILITIES		0.3%			154,858
NET ASSETS		100.0%		$	55,552,626
OPTIONS WRITTEN
			Number of		Market
Call Options			Contracts		Value
Websense, Inc., expiring Jan. 2005
@ $45.			600		(420,000)
Websense, Inc., expiring Jan. 2005
@ $50.			600		(156,000)
Total (premiums received $187,286)
(Note 2)				$	(576,000)

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 29

Firsthand Global Technology Fund
PORTFOLIO OF INVESTMENTS
December 31, 2004

				MARKET
		PERCENT	SHARES	VALUE
COMMON STOCK		98.8%			$       32,144,565
(Cost $31,511,907)
COMMUNICATIONS EQUIPMENT		21.2%			6,891,491
*	Alvarion Ltd.		148,900		1,977,392
*	Ceragon Networks Ltd.		265,900		1,789,507
	Nokia Corp. - ADR		7,100		111,257
	QUALCOMM, Inc.		10,000		424,000
*	UTStarcom, Inc.		116,900		2,589,335
ELECTRONIC DESIGN AUTOMATION		4.4%			1,417,680
*	PDF Solutions, Inc.		88,000		1,417,680
ELECTRONICS MANUFACTURING
SERVICES		0.4%			121,089
	Elcoteq Network Corp. - A		5,000		121,089
INTERNET		1.6%			522,600
*	RADWARE Ltd.		20,000		522,600
OTHER ELECTRONICS		15.6%			5,082,878
	Alps Electric Co., Ltd.		65,000		966,173
	Fujitsu Ltd.		223,000		1,447,883
*	Intevac, Inc.		69,000		521,640
	Sharp Corp.		52,000		846,841
	TDK Corp.		17,600		1,300,341
PERIPHERALS		3.6%			1,183,728
*	Western Digital Corp.		109,200		1,183,728
SEMICONDUCTOR EQUIPMENT		6.8%			2,222,024
*	ASML Holding N.V.		66,758		1,062,120
	Hoya Corp.		1,900		213,988
	Tokyo Electron Ltd.		15,400		945,916
SEMICONDUCTORS		18.4%			5,983,356
*	Agere Systems, Inc. - A		200,000		274,000
*	Infineon Technologies AG - ADR		28,700		312,830
*	Kopin Corp.		156,000		603,720

* Non-income producing

see accompanying notes to financial statements

2004 Annual Report - 30

Firsthand Global Technology Fund
PORTFOLIO OF INVESTMENTS (continued)
December 31, 2004

				MARKET
		PERCENT	SHARES	VALUE
*	OmniVision Technologies, Inc.		55,000	$	1,009,250
	Samsung Electronics Co., Ltd. -
	GDR (144A)		8,800		1,914,799
	STMicroelectronics N.V. - ADR		32,400		625,968
	Taiwan Semiconductor
	Manufacturing Co. - ADR		105,464		895,389
*	Zoran Corp.		30,000		347,400
SERVICES		6.9%			2,243,006
*	Amkor Technology, Inc.		125,500		838,340
*	j2 Global Communications, Inc.		12,900		445,050
*	Lionbridge Technologies, Inc.		142,800		959,616
SOFTWARE		19.9%			6,476,713
*	A mdocs Ltd.		50,000		1,312,500
*	Business Objects SA - ADR		20,000		506,800
*	Cognos, Inc.		25,000		1,101,500
*	Comverse Technology, Inc.		55,000		1,344,750
*	Mercury Interactive Corp.		20,000		911,000
	SAP AG - ADR		25,300		1,118,513
*	Verint Systems, Inc.		5,000		181,650
CASH EQUIVALENTS		3.7%			1,199,965
(Cost $1,199,965)
SSgA Prime Money Market Portfolio			1,199,965		1,199,965
TOTAL INVESTMENT SECURITIES		102.5%			33,344,530
(Cost $32,711,872)
LIABILITIES IN EXCESS OF OTHER ASSETS		(2.5)%			(820,428)
NET ASSETS		100.0%		$	32,524,102

*         Non-income producing
ADR   American Depositary Receipts
GDR   Global Depositary Receipts

see accompanying notes to financial statements

2004 Annual Report - 31

STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2004

	FIRSTHAND		FIRSTHAND		FIRSTHAND
	TECHNOLOGY		TECHNOLOGY		TECHNOLOGY
	VALUE		LEADERS		INNOVATORS
	FUND		FUND		FUND
ASSETS
Investment securities:
Unaffiliated issuers at acquisition cost	$	857,035,371	$	114,741,939	$	67,040,148
Affiliated issuers at acquisition cost		98,731,272		-		15,726,920
Total acquisition cost	$	955,766,643	$	114,741,939	$	82,767,068
Unaffiliated issuers at market value	$	525,967,449	$	113,453,942	$	53,658,155
Affiliated issuers at market value		57,636,487		-		4,126,523
Total market value (Note 2)		583,603,936		113,453,942		57,784,678
Cash		-		-		2,697
Receivable for securities sold		10,666,407		2,377,811		697,596
Receivables from dividends and interest		45,369		9,756		48,604
Receivable for capital shares sold		185,354		16,540		1,944
Other receivables		251,569		104,268		-
Deferred trustee compensation (Note 6)		94,750		55,333		55,333
TOTAL ASSETS		594,847,385		116,017,650		58,590,852
LIABILITIES
Payable for securities purchased		-		462,839		-
Payable to affiliates (Note 4)		984,913		191,820		95,213
Payable for capital shares redeemed		1,816,536		389,049		284,257
Payable for trustee compensation (Note 6)		94,750		55,333		55,333
Payable to custodian		5,021,245		1,003,760		-
TOTAL LIABILITIES		7,917,444		2,102,801		434,803
NET ASSETS	$	586,929,941	$	113,914,849	$	58,156,049
Net assets consist of:
Paid-in-capital	$	3,418,608,974	$	455,701,564	$	435,836,077
Accumulated net realized losses from
security transactions and foreign currency		(2,459,516,326)		(340,498,718)		(352,697,638)
Net unrealized depreciation on
investments and foreign currency		(372,162,707)		(1,287,997)		(24,982,390)
NET ASSETS	$	586,929,941	$	113,914,849	$	58,156,049
Shares of beneficial interest
outstanding (unlimited number of
shares authorized, no par value)		19,909,940		6,802,415		5,770,397
Net asset value, redemption price
and offering price per share (Note 2)	$	29.48	$	16.75	$	10.08

see accompanying notes to financial statements

2004 Annual Report - 32

STATEMENTS OF ASSETS AND LIABILITIES (continued)
December 31, 2004

			FIRSTHAND
	FIRSTHAND		GLOBAL
	E-COMMERCE		TECHNOLOGY
	FUND		FUND
ASSETS
Investment securities:
Unaffiliated issuers at acquisition cost	$	48,684,605	$	32,711,872
Affiliated issuers at acquisition cost		-		-
Total acquisition cost	$	48,684,605	$	32,711,872
Unaffiliated issuers at market value	$	55,397,768	$	33,344,530
Affiliated issuers at market value		-		-
Total market value (Note 2)		55,397,768		33,344,530
Cash		3,231		360
Receivable for securities sold		1,015,902		-
Receivables from dividends and interest		856		768
Receivable for capital shares sold		57,335		5,443
Deferred trustee compensation (Note 6)		55,333		41,507
TOTAL ASSETS		56,530,425		33,392,608
LIABILITIES
Payable for securities purchased		102,251		111,773
Payable to affiliates (Note 4)		92,926		56,420
Payable for capital shares redeemed		151,289		658,806
Payable for trustee compensation (Note 6)		55,333		41,507
Outstanding options written, at value (premiums
received - $187,286)		576,000		-
Payable to custodian		-		-
TOTAL LIABILITIES		977,799		868,506
NET ASSETS	$	55,552,626	$	32,524,102
Net assets consist of:
Paid-in-capital	$	458,717,858	$	109,318,915
Accumulated net realized losses from
security transactions and foreign currency		(409,489,681)		(77,427,471)
Net unrealized appreciation on
investments and foreign currency		6,324,449		632,658
NET ASSETS	$	55,552,626	$	32,524,102
Shares of beneficial interest
outstanding (unlimited number of
shares authorized, no par value)		17,220,233		7,600,224
Net asset value, redemption price
and offering price per share (Note 2)	$	3.23	$	4.28

see accompanying notes to financial statements

2004 Annual Report - 33

STATEMENTS OF OPERATIONS
For the year ended December 31, 2004

		FIRSTHAND		FIRSTHAND		FIRSTHAND
		TECHNOLOGY		TECHNOLOGY		TECHNOLOGY
		VALUE		LEADERS		INNOVATORS
		FUND		FUND		FUND
INVESTMENT INCOME
	Interest	$	9,655	$	15,049	$	27,650
	Dividends *		3,399,882		460,727		51,430
	TOTAL INVESTMENT INCOME		3,409,537		475,776		79,080
EXPENSES
	Investment advisory fees (Note 4)		10,399,726		1,937,156		1,024,569
	Administrative fees (Note 4)		2,776,585		581,147		307,371
	TOTAL EXPENSES		13,176,311		2,518,303		1,331,940
NET INVESTMENT LOSS			(9,766,774)		(2,042,527)		(1,252,860)
REALIZED AND UNREALIZED GAINS
	(LOSSES) ON INVESTMENTS
	Net realized losses from security transactions
	and foreign currency (including realized
	loss of $(13,467,402), $0 and $0,
	respectively, on sales of investments in
	affiliated issuers)		(258,926,742)		(11,851,283)		(8,641,233)
	Net change in unrealized appreciation
	(depreciation) on investments and
	foreign currency		204,966,127		8,177,778		(707,775)
	Written options		-		-		-
NET REALIZED AND UNREALIZED
	LOSSES ON INVESTMENTS		(53,960,615)		(3,673,505)		(9,349,008)
NET DECREASE IN NET
	ASSETS FROM OPERATIONS	$	(63,727,389)	$	(5,716,032)	$	(10,601,868)
*	Net of foreign tax withholding	$	17,365	$	23,731	$	-

see accompanying notes to financial statements

2004 Annual Report - 34

STATEMENTS OF OPERATIONS (continued)
For the year ended December 31, 2004

				FIRSTHAND
		FIRSTHAND		GLOBAL
		E-COMMERCE		TECHNOLOGY
		FUND		FUND
INVESTMENT INCOME
	Interest	$	17,138	$	8,059
	Dividends *		10,482		107,776
	TOTAL INVESTMENT INCOME		27,620		115,835
EXPENSES
	Investment advisory fees (Note 4)		871,570		667,100
	Administrative fees (Note 4)		261,471		200,130
	TOTAL EXPENSES		1,133,041		867,230
NET INVESTMENT LOSS			(1,105,421)		(751,395)
REALIZED AND UNREALIZED GAINS
	(LOSSES) ON INVESTMENTS
	Net realized gains from security
	transactions and foreign currency
	(including realized loss of $0 and $0,
	respectively, on sales of investments in
	affiliated issuers)		5,762,830		2,012,583
	Net change in unrealized depreciation
	on investments and
	foreign currency		(1,688,034)		(6,944,463)
	Written options		(388,714)		-
NET REALIZED AND UNREALIZED
	GAINS (LOSSES) ON INVESTMENTS		3,686,082		(4,931,880)
NET INCREASE (DECREASE) IN NET
	ASSETS FROM OPERATIONS	$	2,580,661	$	(5,683,275)
*	Net of foreign tax withholding	$	-	$	18,242

see accompanying notes to financial statements

2004 Annual Report - 35

STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 2004, and December 31, 2003

	FIRSTHAND TECHNOLOGY
	VALUE FUND
		Year		Year
		Ended		Ended
		12/31/04		12/31/03
FROM OPERATIONS:
Net investment loss	$	(9,766,774)	$	(11,096,461)
Net realized losses from security transactions
and foreign currency		(258,926,742)		(350,024,846)
Net change in unrealized appreciation on
investments		204,966,127		718,573,278
Net increase (decrease) in net assets from operations		(63,727,389)		357,451,971
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		91,603,669		255,958,697	(B)
Payments for shares redeemed		(318,385,285)		(228,652,238)	(A) (B)
Net increase (decrease) in net assets from capital
share transactions		(226,781,616)		27,306,459
TOTAL INCREASE (DECREASE) IN NET ASSETS		(290,509,005)		384,758,430
NET ASSETS:
Beginning of year		877,438,946		492,680,516
End of year	$	586,929,941	$	877,438,946
CAPITAL SHARE ACTIVITY:
Shares sold		2,988,191		9,387,545	(B)
Shares redeemed		(10,869,703)		(8,835,656)	(B)
Net increase (decrease) in shares outstanding		(7,881,512)		551,889
Shares outstanding, beginning of year		27,791,452		27,239,563
Shares outstanding, end of year		19,909,940		27,791,452

(A)   Net of redemption fees of $82,976.
(B)   See Note 5 of notes to financial statements.

see accompanying notes to financial statements

2004 Annual Report - 36

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended December 31, 2004, and December 31, 2003

	FIRSTHAND TECHNOLOGY
	LEADERS FUND
		Year		Year
		Ended		Ended
		12/31/04		12/31/03
FROM OPERATIONS:
Net investment loss	$	(2,042,527)	$	(2,147,781)
Net realized losses from security transactions
and foreign currency		(11,851,283)		(60,900,509)
Net change in unrealized appreciation on
investments		8,177,778		125,196,291
Net increase (decrease) in net assets from operations		(5,716,032)		62,148,001
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,383,379		24,579,927
Payments for shares redeemed		(45,894,167)		(35,578,744)	(A)
Net decrease in net assets from
capital share transactions		(36,510,788)		(10,998,817)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(42,226,820)		51,149,184
NET ASSETS:
Beginning of year		156,141,669		104,992,485
End of year	$	113,914,849	$	156,141,669
CAPITAL SHARE ACTIVITY:
Shares sold		564,475		1,727,472
Shares redeemed		(2,823,820)		(2,526,281)
Net decrease in shares outstanding		(2,259,345)		(798,809)
Shares outstanding, beginning of year		9,061,760		9,860,569
Shares outstanding, end of year		6,802,415		9,061,760

(A) Net of redemption fees of $17,446.

see accompanying notes to financial statements

2004 Annual Report - 37

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended December 31, 2004, and December 31, 2003

	FIRSTHAND TECHNOLOGY
	INNOVATORS FUND
		Year		Year
		Ended		Ended
		12/31/04		12/31/03
FROM OPERATIONS:
Net investment loss	$	(1,252,860)	$	(1,269,468)
Net realized losses from security transactions
and foreign currency		(8,641,233)		(49,128,316)
Net change in unrealized appreciation
(depreciation) on investments		(707,775)		83,337,829
Net increase (decrease) in net assets from operations		(10,601,868)		32,940,045
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		21,438,690		18,073,624
Payments for shares redeemed		(40,785,516)		(25,530,349)	(A)
Net decrease in net assets from capital
share transactions		(19,346,826)		(7,456,725)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(29,948,694)		25,483,320
NET ASSETS:
Beginning of year		88,104,743		62,621,423
End of year	$	58,156,049	$	88,104,743
CAPITAL SHARE ACTIVITY:
Shares sold		1,943,599		1,778,585
Shares redeemed		(3,793,112)		(2,602,998)
Net decrease in shares outstanding		(1,849,513)		(824,413)
Shares outstanding, beginning of year		7,619,910		8,444,323
Shares outstanding, end of year		5,770,397		7,619,910

(A)   Net of redemption fees of $24,200.

see accompanying notes to financial statements

2004 Annual Report - 38

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended December 31, 2004, and December 31, 2003

	FIRSTHAND
	E-COMMERCE FUND
		Year		Year
		Ended		Ended
		12/31/04		12/31/03
FROM OPERATIONS:
Net investment loss	$	(1,105,421)	$	(1,027,927)
Net realized gains (losses) from security transactions
and foreign currency		5,762,830		(6,028,799)
Net change in unrealized appreciation
(depreciation) on investments, written options,
and foreign currency		(2,076,748)		30,614,322
Net increase in net assets from operations		2,580,661		23,557,596
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,715,349		11,440,088
Payments for shares redeemed		(23,141,295)		(20,434,064)	(A)
Net decrease in net assets from capital
share transactions		(13,425,946)		(8,993,976)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(10,845,285)		14,563,620
NET ASSETS:
Beginning of year		66,397,911		51,834,291
End of year	$	55,552,626	$	66,397,911
CAPITAL SHARE ACTIVITY:
Shares sold		3,137,874		4,320,048
Shares redeemed		(7,586,633)		(7,623,899)
Net decrease in shares outstanding		(4,448,759)		(3,303,851)
Shares outstanding, beginning of year		21,668,992		24,972,843
Shares outstanding, end of year		17,220,233		21,668,992

(A)   Net of redemption fees of $7,309.

see accompanying notes to financial statements

2004 Annual Report - 39

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended December 31, 2004, and December 31, 2003

	FIRSTHAND GLOBAL
	TECHNOLOGY FUND
		Year		Year
		Ended		Ended
		12/31/04		12/31/03
FROM OPERATIONS:
Net investment loss	$	(751,395)	$	(664,664)
Net realized gains (losses) from security transactions
and foreign currency		2,012,583		(8,818,502)
Net change in unrealized appreciation (depreciation) on
investments and foreign currency		(6,944,463)		30,956,070
Net increase (decrease) in net assets from operations		(5,683,275)		21,472,904
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		27,899,673		46,141,349
Payments for shares redeemed		(47,030,264)		(30,500,852)	(A)
Net increase (decrease) in net assets from capital
share transactions		(19,130,591)		15,640,497
TOTAL INCREASE (DECREASE) IN NET ASSETS		(24,813,866)		37,113,401
NET ASSETS:
Beginning of year		57,337,968		20,224,567
End of year	$	32,524,102	$	57,337,968
CAPITAL SHARE ACTIVITY:
Shares sold		6,368,151		11,641,914
Shares redeemed		(11,197,824)		(7,553,371)
Net increase (decrease) in shares outstanding		(4,829,673)		4,088,543
Shares outstanding, beginning of year		12,429,897		8,341,354
Shares outstanding, end of year		7,600,224		12,429,897

(A)   Net of redemption fees of $1,216.

see accompanying notes to financial statements

2004 Annual Report - 40

Firsthand Technology Value Fund
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each year

		Year		Year		Year		Year		Year
		Ended		Ended		Ended		Ended		Ended
		12/31/04		12/31/03	12/31/02			12/31/01	12/31/00
Net asset value at beginning of year	$	31.57	$	18.09	$	41.25	$	74.33	$	90.52
Income from investment operations:
Net investment loss		(0.49)		(0.40)		(0.46)		(0.65)		(1.14)
Net realized and unrealized
gains (losses) on investments		(1.60)		13.88		(22.72)		(32.16)		(7.29)
Total from investment operations		(2.09)		13.48		(23.18)		(32.81)		(8.43)
Less distributions:
Dividends from net
investment income		-		-		-		-		-
Distributions from net
realized gains		-		-		-		(0.38)		(7.86)
Distributions in excess of net
realized gains		-		-		-		-		-
Total distributions		-		-		-		(0.38)		(7.86)
Paid-in-capital from redemption
fees (Note 2)		-		0.00 (A)		0.02		0.11		0.10
Net asset value at end of year	$	29.48	$	31.57	$	18.09	$	41.25	$	74.33
Total return		(6.62%)		74.52%		(56.15%)		(44.00%)		(9.97%)
Net assets at end of year (millions)	$	586.9	$	877.4	$	492.7	$	1,449.9	$	3,030.8
Ratio of expenses to average
net assets		1.90%		1.90%		1.89%		1.84%		1.83%
Ratio of net investment loss to
average net assets		(1.41%)		(1.64%)		(1.56%)		(1.20%)		(1.29%)
Portfolio turnover rate		17%		38%		44%		57%		59%

(A)   Amount is less than $0.01.

see accompanying notes to financial statements

2004 Annual Report - 41

Firsthand Technology Leaders Fund
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each year

		Year		Year		Year		Year		Year
		Ended		Ended		Ended		Ended		Ended
		12/31/04		12/31/03	12/31/02			12/31/01		12/31/00
Net asset value at beginning of year	$	17.23	$	10.65	$	18.86	$	33.84	$	44.68
Income from investment operations:
Net investment loss		(0.30)		(0.24)		(0.26)		(0.41)		(0.67)
Net realized and unrealized
gains (losses) on investments		(0.18)		6.82		(7.96)		(14.62)		(10.19)
Total from investment operations		(0.48)		6.58		(8.22)		(15.03)		(10.86)
Less distributions:
Dividends from net investment
income		-		-		-		-		-
Distributions from net
realized gains		-		-		-		-		(0.01)
Distributions in excess of net
realized gains		-		-		-		-		-
Total distributions		-		-		-		-		(0.01)
Paid-in-capital from redemption
fees (Note 2)		-		0.00 (A)		0.01		0.05		0.03
Net asset value at end of year	$	16.75	$	17.23	$	10.65	$	18.86	$	33.84
Total return		(2.79%)		61.78%		(43.53%)		(44.27%)		(24.23%)
Net assets at end of year (millions)	$	113.9	$	156.1	$	105.0	$	241.3	$	517.2
Ratio of expenses to average
net assets		1.95%		1.95%		1.95%		1.93%		1.90%
Ratio of net investment loss to
average net assets		(1.58%)		(1.65%)		(1.63%)		(1.54%)		(1.44%)
Portfolio turnover rate		22%		28%		46%		44%		35%

(A)   Amount is less than $0.01.

see accompanying notes to financial statements

2004 Annual Report - 42

Firsthand Technology Innovators Fund
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each year

		Year		Year		Year		Year		Year
		Ended		Ended		Ended		Ended		Ended
		12/31/04		12/31/03	12/31/02			12/31/01		12/31/00
Net asset value at beginning of year	$	11.56	$	7.42	$	16.40	$	23.13	$	49.36
Income from investment operations:
Net investment loss		(0.22)		(0.17)		(0.20)		(0.24)		(0.85)
Net realized and unrealized
gains (losses) on investments		(1.26)		4.31		(8.80)		(6.51)		(16.84)
Total from investment operations		(1.48)		4.14		(9.00)		(6.75)		(17.69)
Less distributions:
Dividends from net investment
income		-		-		-		-		-
Distributions from net
realized gains		-		-		-		-		(8.55)
Distributions in excess of net
realized gains		-		-		-		-		-
Total distributions		-		-		-		-		(8.55)
Paid-in-capital from redemption
fees (Note 2)		-		0.00 (A)		0.02		0.02		0.01
Net asset value at end of year	$	10.08	$	11.56	$	7.42	$	16.40	$	23.13
Total return		(12.80%)		55.80%		(54.76%)		(29.10%)		(37.94%)
Net assets at end of year (millions)	$	58.2	$	88.1	$	62.6	$	204.9	$	300.4
Ratio of expenses to average
net assets		1.95%		1.95%		1.95%		1.94%		1.90%
Ratio of net investment loss to
average net assets		(1.83%)		(1.67%)		(1.66%)		(1.43%)		(1.51%)
Portfolio turnover rate		41%		64%		53%		63%		89%

(A)   Amount is less than $0.01.

see accompanying notes to financial statements

2004 Annual Report - 43

Firsthand e-Commerce Fund
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each year

		Year		Year		Year		Year		Year
		Ended		Ended		Ended		Ended		Ended
		12/31/04		12/31/03	12/31/02			12/31/01		12/31/00
Net asset value at beginning of year	$	3.06	$	2.08	$	3.33	$	6.63	$	14.86
Income from investment operations:
Net investment loss		(0.06)		(0.05)		(0.04)		(0.04)		(0.21)
Net realized and unrealized
gains (losses) on investments		0.23		1.03		(1.21)		(3.26)		(7.99)
Total from investment operations		0.17		0.98		(1.25)		(3.30)		(8.20)
Less distributions:
Dividends from net investment
income		-		-		-		-		(0.00)	(A)
Distributions from net realized
gains		-		-		-		-		(0.05)
Distributions in excess of net
realized gains		-		-		-		-		-
Total distributions		-		-		-		-		(0.05)
Paid-in-capital from redemption
fees (Note 2)		-		0.00 (A)		0.00(A)		0.00 (A)		0.02
Net asset value at end of year	$	3.23	$	3.06	$	2.08	$	3.33	$	6.63
Total return		5.56%		47.12%		(37.54%)		(49.77%)		(55.08%)
Net assets at end of year (millions)	$	55.6	$	66.4	$	51.8	$	99.5	$	216.5
Ratio of expenses to average
net assets		1.95%		1.95%		1.95%		1.95%		1.92%
Ratio of net investment loss to
average net assets		(1.90%)		(1.72%)		(1.69%)		(1.13%)		(1.44%)
Portfolio turnover rate		22%		46%		61%		67%		73%

(A) Amount is less than $0.01.

see accompanying notes to financial statements

2004 Annual Report-  44

Firsthand Global Technology Fund
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each period

		Year		Year			Year			Year		Period
		Ended		Ended			Ended			Ended		Ended
		12/31/04		12/31/03			12/31/02			12/31/01	12/31/00		(A)
Net asset value at beginning of period	$	4.61	$	2.42		$	5.14		$	8.75	$	10.00
Income from investment operations:
Net investment income (loss)		(0.10)		(0.05)			(0.07)			(0.07)		0.04
Net realized and unrealized
gains (losses) on investments		(0.23)		2.24			(2.65)			(3.57)		(1.28)
Total from investment operations		(0.33)		2.19			(2.72)			(3.64)		(1.24)
Less distributions:
Dividends from net
investment income		-		-			-			-		(0.03)
Distributions from net
realized gains		-		-			-			-		-
Distributions in excess of net
realized gains		-		-			-			-		-
Total distributions		-		-			-			-		(0.03)
Paid-in-capital from redemption
fees (Note 2)		-		0.00	(B)		0.00	(B)		0.03		0.02
Net asset value at end of period	$	4.28	$	4.61		$	2.42		$	5.14	$	8.75
Total return		(7.16%)		90.50%			(52.92%)			(41.26%)		(12.18%)	(C)
Net assets at end of period (millions)	$	32.5	$	57.3		$	20.2		$	53.0	$	125.3
Ratio of expenses to average
net assets		1.95%		1.95%			1.95%			1.95%		1.95%	(D)
Ratio of net investment income
(loss) to average net assets		(1.69%)		(1.77%)			(1.73%)			(0.95%)		1.66%	(D)
Portfolio turnover rate		15%		50%			26%			67%		0%	(C)

(A) Represents the period from the commencement of operations (September 29, 2000) through December 31, 2000.
(B) Amount is less than $0.01.
(C) Not annualized.
(D) Annualized.

see accompanying notes to financial statements

2004 Annual Report - 45

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

1. Organization

Each of Firsthand Technology Value Fund, Firsthand Technology Leaders Fund, Firsthand Technology Innovators Fund, Firsthand e-Commerce Fund, and Firsthand Global Technology Fund (the "Funds") is a non-diversified series of Firsthand Funds (the "Trust"), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust, a Delaware statutory trust, was organized on November 8, 1993. The inception date for each Fund (the date on which a net asset value was first determined for that Fund) is as follows:

Fund	Inception Date
Firsthand Technology Value Fund	May 20, 1994*
Firsthand Technology Leaders Fund	December 10, 1997
Firsthand Technology Innovators Fund	May 20, 1998
Firsthand e-Commerce Fund	September 30, 1999
Firsthand Global Technology Fund	September 29, 2000

* Firsthand Technology Value Fund Investor Class commenced operations on May 20, 1994; the SEC effective date for the Investor Class is December 15, 1994. Firsthand Technology Value Fund Advisor Class commenced operations on February 1, 2002, and liquidated on February 28, 2003. Each Fund currently offers one class of shares-Investor Class shares.

Each Fund's investment objective is long-term growth of capital.

Firsthand Technology Value Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in high-technology companies that Firsthand Capital Management, Inc. (the "Investment Adviser") believes are undervalued and have potential for capital appreciation.

Firsthand Technology Leaders Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in high-technology companies that the Investment Adviser believes hold dominant competitive positions in high-growth industries.

Firsthand Technology Innovators Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in high-technology companies that the Investment Adviser considers to be best positioned to introduce "breakthrough" products in the fastest-growing markets in the technology sector.

Firsthand e-Commerce Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in equity securities of companies that provide the products, services, and technologies to facilitate the growth of electronic commerce.

Firsthand Global Technology Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in high-technology companies, both domestic and foreign, that the Investment Adviser considers best positioned to benefit significantly from the adoption of new technologies worldwide.

2004 Annual Report - 46

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

2. Significant Accounting Policies

The following is a summary of the Funds' significant accounting policies:

Securities Valuation-A Fund's portfolio of securities is valued as follows:

1.	Securities traded on stock exchanges, or quoted by Nasdaq, are valued according to the Nasdaq official closing price, if applicable, or at their last reported sale price as of the close of trading on the New York Stock Exchange ("NYSE") (normally 4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price.
2.	Securities traded in the over-the-counter market, but not quoted by Nasdaq, are valued at the last sale price (or, if the last sale price is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the close of trading on the NYSE.
3.	Securities traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market.
4.	Securities and other assets that do not have market quotations readily available are valued at their fair value as determined in good faith using procedures established by the Board of Trustees.

Share Valuation-The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund's shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund's net asset value per share. Prior to April 30, 2003, shares of each Fund were charged a 2% redemption fee on shares redeemed or exchanged within 180 days of purchase. These fees were deducted from the redemption proceeds otherwise payable to the shareholder. Each Fund retained the fee charged as paid-in capital and such fees became part of that Fund's daily NAV calculation.

Repurchase Agreements-Repurchase agreements, which must be secured with collateral of a credit quality at least equal to a Fund's investment criteria for its portfolio securities, are valued at cost, which, together with accrued interest, approximates market value. At the time a Fund enters into a repurchase agreement, the value of the underlying securities, including accrued interest, will equal or exceed the value of the repurchase agreement, and in the case of a repurchase agreement exceeding one day, the seller will agree that the value of the underlying securities, including accrued interest, will at all times equal or exceed the value of the repurchase agreement. In the event of a bankruptcy or other default by the seller of a repurchase agreement, a Fund could experience delays in liquidating the underlying securities and losses.

Investment Income-Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Discounts and premiums on securities purchased are amortized over the lives of the respective securities.

2004 Annual Report - 47

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Foreign Securities-Each Fund may invest in companies that trade on U.S. exchanges as American Depositary Receipts ("ADRs"), on foreign exchanges, or on foreign over-the-counter markets. Investing in the securities of foreign companies exposes your investment in a Fund to risk. Foreign stock markets tend to be more volatile than the U.S. market due to economic and/or political instability and the regulatory conditions in some countries. In addition, some of the securities in which the Fund may invest may be denominated in foreign currencies, the value of which may decline against the U.S. dollar. An investment in foreign securities may be subject to high levels of foreign taxation, including foreign taxes withheld at the source.

Options-The Funds (other than Firsthand Technology Value Fund) may purchase put and call options to attempt to provide protection against adverse price effects from anticipated changes in prevailing prices of securities or stock indices. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

Distributions to Shareholders-Each Fund expects to distribute its net investment income and net realized gains, if any, annually. Distributions from net investment income and capital gains are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States.

Reclassification of Capital Accounts-The funds account and report for distributions to shareholders in accordance with the American Institute of Certified Public Accountant's Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital and Return of Capital Distributions by Investment Companies. For the year ended December 31, 2004, each Fund recorded the following reclassifications to the accounts listed below:

			Increase (Decrease)
		Paid-in-Capital	Accumulated Net			Accumulated Net
			Investment Loss			Realized Loss
Firsthand Technology
Value Fund	$	(9,766,774)	$	9,766,774	$	-
Firsthand Technology
Leaders Fund		(2,042,527)		2,042,527		-
Firsthand Technology
Innovators Fund		(1,252,860)		1,252,860		-
Firsthand e-Commerce
Fund		(1,105,421)		1,105,421		-
Firsthand Global
Technology Fund		(750,491)		751,395		(904)

2004 Annual Report - 48

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Security Transactions-Security transactions are accounted for on the trade date. Securities sold are valued on a specific identification basis.

Estimates-The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Federal Income Tax-Each Fund has elected, and intends to qualify annually, for the special tax treatment afforded regulated investment companies under the Internal Revenue Code of 1986, as amended (the "Code"). As provided in the Code, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its taxable net income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. Accordingly, no provision for income taxes has been made.

To avoid imposition of the excise tax applicable to regulated investment companies, each Fund intends to declare as dividends in each calendar year at least 98% of its net investment income (earned during the calendar year) and 98% of its net realized capital gains (earned during the 12 months ended October 31) plus undistributed amounts, if any, from prior years.

The following information is based upon the federal income tax cost of portfolio investments as of December 31, 2004.

		Firsthand		Firsthand		Firsthand				Firsthand
		Technology		Technology		Technology		Firsthand		Global
		Value		Leaders		Innovators		e-Commerce		Technology
		Fund		Fund		Fund		Fund		Fund
Gross unrealized
appreciation	$	141,770,374	$	24,207,174	$	7,873,791	$	16,982,049	$	6,467,589
Gross unrealized
depreciation		(565,342,052)		(25,610,479)		(32,856,181)		(10,426,112)		(5,834,931)
Net unrealized
appreciation
(depreciation)	$	(423,571,678)	$	(1,403,305)	$	(24,982,390)	$	6,555,937	$	632,658
Federal income
tax cost	$	1,007,175,614	$	114,857,247	$	82,767,068	$	48,841,831	$	32,711,872

2004 Annual Report - 49

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

The difference between the acquisition cost and the federal income tax cost of portfolio investments is due to certain timing differences in the recognition of capital losses under accounting principles generally accepted in the United States and income tax regulations. As of December 31, 2004, the Funds had capital loss carryforwards for federal income tax purposes as follows:

	Expiring 2008		Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012
Firsthand Technology
Value Fund	$                    -	$	1,092,189,416	$	634,016,220	$	330,969,371	$	333,067,019
Firsthand Technology
Leaders Fund	7,699,026		134,863,157		109,312,900		53,324,264		33,348,418
Firsthand Technology
Innovators Fund	-		195,444,987		87,067,727		61,543,691		7,252,266
Firsthand e-Commerce
Fund	-		262,005,645		141,312,315		6,014,495		-
Firsthand Global
Technology Fund	-		47,790,468		13,149,532		16,183,628		-

For Firsthand Technology Value Fund, $7,924,308 of the $1,092,189,416 capital loss carryforward expiring in 2009 was acquired in the reorganization with Firsthand Communications Fund.

Components of distributable earnings:

		Firsthand		Firsthand		Firsthand				Firsthand
		Technology		Technology		Technology		Firsthand		Global
		Value	Leaders			Innovators		e-Commerce		Technology
		Fund		Fund		Fund		Fund		Fund
Net Unrealized
Appreciation
(Depreciation)*	$	(423,571,678)	$	(1,403,305)	$	(24,982,390)	$	6,167,223	$	632,658
Post October Capital/
Currency Loss		(17,865,329)		(1,835,645)		(1,388,967)		-		(303,843)
Accumulated Capital
Loss Carryforward		(2,390,242,026)		(338,547,765)		(351,308,671)		(409,332,455)		(77,123,628)
Total Distributable
Earnings	$	(2,831,679,033)	$	(341,786,715)	$	(377,680,028)	$	(403,165,232)	$	(76,794,813)

*On investments, derivative and foreign currency denominated assets and liabilities.

2004 Annual Report - 50

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

3. Investment Transactions

Investment transactions (excluding short-term investments) were as follows for the year ended December 31, 2004.

		Firsthand		Firsthand		Firsthand				Firsthand
		Technology		Technology		Technology		Firsthand		Global
		Value		Leaders		Innovators		e-Commerce		Technology
		Fund		Fund		Fund		Fund		Fund
Purchase of
investment
securities	$	115,803,353	$	28,293,350	$	27,268,554	$	12,289,230	$	6,284,409
Proceeds from sales
and maturities of
investment securities	$	336,680,423	$	66,714,070	$	47,850,556	$	29,586,360	$	25,314,984

Transactions in options written during the year ended December 31, 2004, were as follows:

Firsthand e-Commerce Fund	Number of Contracts	Premiums Received
Options outstanding at December 31, 2003	-	$	-
Options written	1,200		187,286
Options expired	-		-
Options outstanding at December 31, 2004	1,200	$	187,286

4. Investment Advisory and Administration Agreements

Certain trustees and officers of the Trust are also officers of the Investment Adviser, or State Street Bank and Trust Company ("State Street"), which is the sub-administrator, shareholder servicing and transfer agent, investment accounting agent, and custodian for the Trust.

INVESTMENT ADVISORY AGREEMENT

Each Fund's investments are managed by the Investment Adviser pursuant to the terms of an Investment Advisory Agreement (the "Advisory Agreement"). Under the Advisory Agreement, the Investment Adviser provides each Fund with investment research, advice, management, and supervision and manages the investment and reinvestment of assets of each Fund consistent with each Fund's investment objectives, policies, and limitations. The Investment Adviser is responsible for (i) compensation of any of the Fund's trustees, officers, and employees who are interested persons of the Investment Adviser; and (ii) compensation of the Investment Adviser's personnel and other expenses incurred in connection with the provision of portfolio management services under the Advisory Agreement.

For the services it provides under the Advisory Agreement, the Investment Adviser receives from each Fund, on a monthly basis, an advisory fee at the annual rate of 1.50% of its average daily net assets. The Advisory Agreement requires the Investment Adviser to waive fees and, if necessary, to reimburse expenses of each such Fund to the extent necessary to limit a Fund's total

2004 Annual Report - 51

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

operating expenses to 1.95% of its average net assets up to $200 million, 1.90% of such assets from $200 million to $500 million, 1.85% of such assets from $500 million to $1 billion, and 1.80% of such assets in excess of $1 billion.

ADMINISTRATION AGREEMENT

The Trust has entered into a separate Administration Agreement with the Investment Adviser. The agreement obligates the Investment Adviser to provide administrative and general supervisory services to each Fund (the "Administration Agreement"). Under the Administration Agreement, the Investment Adviser renders supervisory and corporate administrative services to the Trust, as well as oversees the maintenance of all books and records with respect to each Fund's securities transactions and each Fund's book of accounts in accordance with all applicable federal and state laws and regulations. The Investment Adviser also arranges for the preservation of journals, ledgers, corporate documents, brokerage account records, and other records as required by the 1940 Act.

The Investment Adviser is responsible for the equipment, staff, office space, and facilities necessary to perform its obligations under the Administration Agreement. Under the Administration Agreement, the Investment Adviser has assumed responsibility for payment of all of each Fund's operating expenses excluding independent trustees' compensation; brokerage and commission expenses; fees payable under "Rule 12b-1 plans", if any, and shareholder servicing plans, if any; litigation costs; and any extraordinary and non-recurring expenses.

For the services it provides under the Administration Agreement, the Investment Adviser receives a fee from each Fund at the annual rate of 0.45% of its average daily net assets up to $200 million, 0.40% of such assets from $200 million to $500 million, 0.35% of such assets from $500 million to $1 billion, and 0.30% of such assets in excess of $1 billion.

The Investment Adviser has entered into a Sub-Administration Agreement with State Street. Under this agreement, the Investment Adviser (not the Funds) pays to State Street the fees for the administrative services provided by State Street.

5. Capital Shares

Capital share transactions for Firsthand Technology Value Fund for the period ended December 31, 2003, are noted below:

	INVESTOR CLASS			ADVISOR CLASS
	Shares		Amount	Shares		Amount
Shares sold	9,387,545	$	255,958,697	-	$	-
Shares redeemed	(8,835,652)		(228,652,163)	(4.486)		(75.18)
Net increase (decrease)
from capital share transactions	551,893	$	27,306,534	(4.486)	$	(75.18)

6. Deferred Compensation Agreement With Trustees

During the fiscal year ended December 31, 2000, the Trust entered into a deferred compensation agreement with the independent trustees of the Trust.

2004 Annual Report - 52

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Under the deferred compensation agreement, each independent trustee may elect to defer some or all of his trustee fees. Each independent trustee is paid an annual retainer of $24,000, $6,000 for each regular meeting attended in person, and $1,000 for each special meeting attended. Deferred fees may be deemed invested in the Firsthand Funds selected by each independent trustee on a tax-deferred basis and deferred fees (and the income, gains, and losses credited during the deferral period) are payable at least two years after deferral date. Upon payment of any deferred fees (and the income, gains, and losses credited during the deferral period), each Fund will expense its pro rata share of those fees.

7. Investments in Affiliates and Restricted Securities

Affiliated issuers, as defined by the 1940 Act, are those in which a Fund's holdings represent 5% or more of the outstanding voting securities of the issuer. A summary of each Fund's investments in affiliates, if any, for the period ended December 31, 2004, is noted below:

		SHARE ACTIVITY
	Balance	Purchases	Sales	Balance		Realized		Value		Acquisition
Affiliate	12/31/03			12/31/04		Gain (Loss)		12/31/04		Cost
Firsthand Technology Value Fund
Anaren, Inc.*	1,211,900	-	100,000	1,111,900	$	(183,833)	$	14,410,224	$	17,837,394
Clarisay, Inc. Series B *	2,605,306	-	-	2,605,306		-		-		2,383,855
Clarisay, Inc. Series C	7,194,244	-	-	7,194,244		-		-		2,000,000
Clarisay, Inc. Warrants 06/03/2005	500,000	-	-	500,000		-		-		-
Clarisay, Inc. Warrants 07/07/2005	500,000	-	-	500,000		-		-		-
Clarisay, Inc. Warrants 08/07/2005	500,000	-	-	500,000		-		-		-
Clarisay, Inc. Warrants 09/12/2005	250,000	-	-	250,000		-		-		-
Clarisay, Inc. Warrants 09/19/2005	100,000	-	-	100,000		-		-		-
Clarisay, Inc. Warrants 11/10/2005	500,000	-	-	500,000		-		-		-
Clarisay, Inc. 8.00% 06/03/2005	500,000	-	-	500,000		-		-		500,000
Clarisay, Inc. 8.00% 07/07/2005	500,000	-	-	500,000		-		-		500,000
Clarisay, Inc. 8.00% 08/07/2005	500,000	-	-	500,000		-		-		500,000
Clarisay, Inc. 8.00% 09/12/2005	250,000	-	-	250,000		-		-		250,000
Clarisay, Inc. 8.00% 09/19/2005	100,000	-	-	100,000		-		-		100,000
Clarisay, Inc. 8.00% 11/10/2005	500,000	-	-	500,000		-		-		500,000

2004 Annual Report - 53

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

		SHARE ACTIVITY
	Balance	Purchases	Sales	Balance		Realized		Value		Acquisition
Affiliate	12/31/03			12/31/04		Gain (Loss)		12/31/04		Cost
Firsthand Technology Value
Fund (continued)
Concord Communications, Inc.	1,189,300	-	100,000	1,089,300	$	(3,740,720)	$	12,069,444	$	42,650,119
Global Locate, Inc. Series A*	6,030,896	-	-	6,030,896		-		7,794,209		5,144,355
Global Locate, Inc. Series C	1,111,111	-	-	1,111,111		-		1,000,000		1,000,000
Global Locate, Inc. Series D	-	555,555	-	555,555		-		500,000		500,000
Global Locate, Inc. Board Warrants	-	18,750	-	18,750		-		94		-
Global Locate, Inc. Board Warrants	75,000	-	-	75,000		-		375		-
Global Locate, Inc. Board Warrants	-	75,000	-	75,000		-		375		-
Global Locate, Inc. Series C Warrants	370,370	-	-	370,370		-		3,704		-
Global Locate, Inc. Series D Warrants	-	111,111	-	111,111		-		1,111		-
Maple Optical Systems, Inc.
Series A-1	10,352,054	-	-	10,352,054		-		-		3,623,219
Napster, Inc.	-	1,800,000***	50,000	1,750,000		196,114		16,450,000		8,926,836
Silicon Genesis Corp. Series 1-D	850,830**	-	-	850,830		-		749,751		4,315,500
Silicon Genesis Corp. Series 1-E	4,071,226	-	-	4,071,226		-		4,315,500		4,315,500
Silicon Genesis Corp. Common Stock	726,424**	-	-	726,424		-		7,264		3,684,494
Silicon Genesis Corp. Series
1-E Warrants	1,257,859	-	-	1,257,859		-		334,339		-
Silicon Genesis Corp.
Common Stock Warrants	37,982	-	-	37,982		-		38		-
Silicon Genesis Corp.
Common Stock Warrants	59,147**	-	-	59,147		-		59		-
Stratex Networks, Inc.	4,832,036	-	145,000	4,687,036		(4,132,106)		10,592,701		64,585,518
Zoran Corp.	1,460,500	-	600,000	860,500		(5,606,857)		9,964,590		8,312,360

2004 Annual Report - 54

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

		SHARE ACTIVITY
	Balance	Purchases	Sales	Balance	Realized	Value	Acquisition
Affiliate	12/31/03			12/31/04	Gain (Loss)	12/31/04	Cost
Firsthand Technology
Innovators Fund
Clarisay, Inc. Series B	2,861,519	-	-	2,861,519	$           -	$          -	$     2,618,290
Clarisay, Inc. Warrants
05/08/2005	500,000	-	-	500,000	-	-	-
Clarisay, Inc. Warrants
09/19/2005	150,000	-	-	150,000	-	-	-
Clarisay, Inc. Warrants
10/10/2005	500,000	-	-	500,000	-	-	-
Clarisay, Inc. Warrants
12/31/2010	109,290	-	-	109,290	-	-	-
Clarisay, Inc. 8.00% 05/08/2005	500,000	-	-	500,000	-	-	500,000
Clarisay, Inc. 8.00% 09/19/2005	150,000	-	-	150,000	-	-	150,000
Clarisay, Inc. 8.00% 10/10/2005	500,000	-	-	500,000	-	-	500,000
Innovion Corp. Series C	1,500,000	-	-	1,500,000	-	1,489,350	3,000,000
Innovion Corp. Warrants	602,577	-	-	602,577	-	603	-
Innovion Corp. 8.00% 03/07/2005	602,577	-	-	602,577	-	602,577	602,577
Maple Optical Systems, Inc.
Series A-1	9,647,945	-	-	9,647,945	-	-	3,376,781
Silicon Genesis Corp. Series 1-C	82,914**	-	-	82,914	-	300,779	1,731,250
Silicon Genesis Corp. Series 1-E	1,633,254	-	-	1,633,254	-	1,731,249	1,731,249
Silicon Genesis Corp. Common Stock	102,135**	-	-	102,135	-	1,021	1,516,773
Silicon Genesis Corp. Series
1-E Warrants	94,339	-	-	94,339	-	944	-

*	Amounts include shares from the merger of Firsthand Communications Fund into Firsthand Technology Value Fund.
**	The beginning share balance is a result of a Silicon Genesis Corp. share restructure.
***	Balance is a result of Roxio, Inc., being acquired by Napster, Inc.

2004 Annual Report - 55

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. A Fund may invest in restricted securities that are consistent with a Fund's investment objective and investment strategies. A Fund will not invest in a restricted security if, immediately after and as a result of the investment in such security, more than 15% of the Fund's net assets would be invested in illiquid securities. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material. As of December 31, 2004, the Funds were invested in the following restricted securities:

Security	Acquisition Date	Shares	Cost		Value		% Net Assets
Firsthand Technology Value Fund
AuthenTec, Inc. Series C P/S	April 4, 2003	1,472,495	$	738,000	$	1,179,881	0.20%
AuthenTec, Inc. Series C Warrants	April 4, 2003	392,665		-		117,835	0.02%
AuthenTec, Inc. Series D P/S	June 14, 2004	290,958		290,958		232,766	0.04%
Caspian Networks, Inc. C/S	February 21, 2002	33,781*		3,378,104		-	0.00%
Celox Networks, Inc. Series A-1 P/S	August 23, 2002	1,000,000		1,200,000		-	0.00%
Celox Networks, Inc. C/S	April 17, 2001	138,121		14,999,941		-	0.00%
Celox Networks, Inc. Series
A-1 Warrants	August 23, 2002	500,000		-		-	0.00%
Clarisay, Inc. Series B P/S	January 24, 2001	2,605,306		2,383,855		-	0.00%
Clarisay, Inc. Series C P/S	August 28, 2002	7,194,244		2,000,000		-	0.00%
Clarisay, Inc. 8.00%
06/03/2005 C/N	June 3, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. 8.00%
07/07/2005 C/N	July 7, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. 8.00%
08/07/2005 C/N	August 7, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. 8.00%
09/12/2005 C/N	September 12, 2003	250,000		250,000		-	0.00%
Clarisay, Inc. 8.00%
09/19/2005 C/N	September 19, 2003	100,000		100,000		-	0.00%
Clarisay, Inc. 8.00%
11/10/2005 C/N	November 10, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. Warrants	June 3, 2003	500,000		-		-	0.00%
Clarisay, Inc. Warrants	July 7, 2003	500,000		-		-	0.00%
Clarisay, Inc. Warrants	August 7, 2003	500,000		-		-	0.00%
Clarisay, Inc. Warrants	September 12, 2003	250,000		-		-	0.00%
Clarisay, Inc. Warrants	September 19, 2003	100,000		-		-	0.00%
Clarisay, Inc. Warrants	November 10, 2003	500,000		-		-	0.00%
Global Locate, Inc. Series A P/S	October 5, 2001	5,861,664		5,000,000		7,575,497	1.29%
Global Locate, Inc. Series A P/S	March 28, 2002	169,232		144,355		218,712	0.04%

2004 Annual Report - 56

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Security	Acquisition Date	Shares	Cost		Value		% Net Assets
Firsthand Technology Value
Fund (continued)
Global Locate, Inc. Series C P/S	May 15, 2003	1,111,111	$	1,000,000	$	1,000,000	0.17%
Global Locate, Inc. Series D P/S	April 2, 2004	555,555		500,000		500,000	0.09%
Global Locate, Inc. Series C Warrants	May 15, 2003	370,370		-		3,704	0.00%
Global Locate, Inc. Board Warrants	May 4, 2004	18,750		-		94	0.00%
Global Locate, Inc. Board Warrants	July 7, 2004	75,000		-		375	0.00%
Global Locate, Inc. Board Warrants	September 8, 2003	75,000		-		375	0.00%
Global Locate, Inc. Series D Warrants	April 2, 2004	111,111		-		1,111	0.00%
IP Unity, Inc. Series C P/S	July 27, 2001	1,104,265		1,987,677		1,792,863	0.31%
IP Unity, Inc. Series E P/S	August 4, 2004	193,042		313,307		313,307	0.05%
IP Unity, Inc. Series E Warrants	August 4, 2004	69,496		69		69	0.00%
Luminous Networks, Inc. Series D P/S	May 31, 2001	868,710		1,816,299		937,642	0.16%
Luminous Networks, Inc. Series E P/S	October 16, 2003	434,724		184,410		184,410	0.03%
Luminous Networks, Inc.
Series D Warrants	December 31, 2003	144,785		-		-	0.00%
Maple Optical Systems, Inc.
Series A-1 P/S	July 31, 2002	5,714,285		2,000,000		-	0.00%
Maple Optical Systems, Inc.
Series A-1 P/S	August 9, 2001	4,637,769		1,623,219		-	0.00%
NanoMuscle, Inc. 8.00%
02/16/2005 C/N	August 17, 2004	122,549		122,549		-	0.00%
NanoMuscle, Inc. 8.00%
02/16/2005 C/N	September 7, 2004	245,422		245,422		-	0.00%
NanoMuscle, Inc. 8.00%
02/16/2005 C/N	November 12, 2004	30,668		30,668		-	0.00%
NanoMuscle, Inc. C/S	August 29, 2003	1,250,000		1,250,000		-	0.00%
NanoMuscle, Inc.
Series B-1 Warrants	August 17, 2004	306,757		123		-	0.00%
NanoMuscle, Inc.
Series A-1 P/S	August 17, 2004	1,250,000		-		-	0.00%
Polaris Networks, Inc.
Series A P/S	November 16, 2001	297,848		297,848		16,918	0.00%
Polaris Networks, Inc.
Warrants	March 29, 2004	75,712		-		76	0.00%
Polaris Networks, Inc.,
Escrow 0.56%	March 29, 2004	50,486		50,486		50,486	0.01%
Polaris Networks, Inc.
10.00% C/N	April 12, 2004	50,475		50,475		50,475	0.01%
Polaris Networks, Inc.
10.00% C/N	July 14, 2004	50,474		50,474		50,474	0.01%
Silicon Genesis Corp.
Series 1-D P/S	April 30, 2002	850,830		4,315,500		749,751	0.13%
Silicon Genesis Corp.
Common Stock Warrants	April 30, 2002	59,147		-		59	0.00%

2004 Annual Report - 57

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Security	Acquisition Date	Shares	Cost		Value		% Net Assets
Firsthand Technology Value
Fund (continued)
Silicon Genesis Corp. Series 1-E P/S	November 4, 2003	4,071,226	$	4,315,500	$	4,315,500	0.74%
Silicon Genesis Corp.
Series 1-E Warrants	October 31, 2003	1,257,859		-		334,339	0.06%
Silicon Genesis Corp.
Common Stock Warrants	November 4, 2003	37,982		-		38	0.00%
Silicon Genesis Corp. C/S	April 30, 2002	726,424		3,684,494		7,264	0.00%
Universal Chemical
Technologies, Inc. - Series B P/S	October 5, 2004	500,000		5,000,000		5,000,000	0.85%
Universal Chemical Technologies,
Inc. - Series B Warrants	October 5, 2004	200,000		-		200	0.00%
			$	61,323,733	$	24,634,221	4.21%
Firsthand Technology Innovators Fund
AuthenTec, Inc. Series C P/S	April 4, 2003	736,248	$	369,000	$	589,941	1.01%
AuthenTec, Inc. Series C Warrants	April 4, 2003	196,333		-		58,917	0.10%
Clarisay, Inc. Series B P/S	January 24, 2001	2,861,519		2,618,290		-	0.00%
Clarisay, Inc. 8.00%
05/08/2005 C/N	May 8, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. Warrants	May 8, 2003	500,000		-		-	0.00%
Clarisay, Inc. 8.00%
09/19/2005 C/N	September 19, 2003	150,000		150,000		-	0.00%
Clarisay, Inc. Warrants	September 19, 2003	150,000		-		-	0.00%
Clarisay, Inc. 8.00%
10/10/2005 C/N	October 10, 2003	500,000		500,000		-	0.00%
Clarisay, Inc. Warrants	October 10, 2003	500,000		-		-	0.00%
Clarisay, Inc. Warrants	December 31, 2003	109,290		-		-	0.00%
Innovion Corp. Series C P/S	February 23, 2001	1,500,000		3,000,000		1,489,350	2.56%
Innovion Corp. 8.00%
03/07/2005 C/N	December 30, 2003	602,577		602,577		602,577	1.04%
Innovion Corp. Warrants	December 30, 2003	602,577		-		603	0.00%
IP Unity, Inc. Series C P/S	July 27, 2001	1,117,957		2,012,323		1,815,093	3.12%
Luminous Networks, Inc. Series D P/S	May 31, 2001	1,522,719		3,183,701		1,643,547	2.83%
Luminous Networks, Inc. Series E P/S	October 16, 2003	762,008		323,244		323,244	0.56%
Luminous Networks, Inc.
Series D Warrants	December 31, 2003	253,787		-		-	0.00%
Maple Optical Systems, Inc.
Series A-1 P/S	August 9, 2001	9,647,945		3,376,781		-	0.00%
NanoMuscle, Inc. Series A-1 P/S	August 17, 2004	1,250,000		-		-	0.00%
NanoMuscle, Inc. C/S	August 29, 2003	1,250,000		1,250,000		-	0.00%

2004 Annual Report - 58

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

Security	Acquisition Date	Shares	Cost		Value		% Net Assets
Firsthand Technology Innovators
Fund (continued)
Polaris Networks, Inc. Series A P/S	November 16, 2001	702,152	$	702,152	$	39,882	0.07%
Silicon Optix, Inc. Series B P/S	November 7, 2003	1,111,111		1,000,000		1,000,000	1.72%
Silicon Genesis Corp. C/S	March 8, 2001	102,135		1,516,773		1,021	0.00%
Silicon Genesis Corp. Series 1-C P/S	March 8, 2001	82,914		1,731,250		300,779	0.52%
Silicon Genesis Corp. Series 1-E P/S	November 4, 2003	1,633,254		1,731,249		1,731,249	2.98%
Silicon Genesis Corp.
Series 1-E Warrants	February 26, 2003	94,339		-		944	0.00%
			$	24,567,340	$	9,597,147	16.51%

* The share balance changed as a result of a Caspian Networks, Inc. share restructure. C/S Common Stock P/S Preferred Stock C/N Convertible Note

8. Risks

Because the return on and value of an investment in each Fund will fluctuate in response to stock market movements, the most significant risk of investing in a Fund is that you may lose money. Stocks and other equity securities are subject to market risks and fluctuations in value due to earnings, as well as economic, political, or regulatory events, and other factors beyond the Investment Adviser's control. The Funds are designed for long-term investors who can accept the risks of investing in a fund with significant common stock holdings in high-technology industries.

Each Fund is non-diversified. A risk of being non-diversified is that a significant change in the value of one company will have a greater impact on the Fund than it would if the Fund diversified its investments. Another risk for the Fund is its concentration of investments in companies within high-technology industries. The value of high-technology companies can, and often does, fluctuate dramatically and may expose you to greater-than-average financial and market risk.

9. Proxy Voting Policy and Procedures (unaudited)

The Funds have adopted proxy voting procedures pursuant to which the Funds delegate the responsibility for voting proxies relating to portfolio securities held by the Funds to the Investment Adviser as part of the Investment Adviser's general management of the Funds, subject to the Board of Trustees' continuing oversight. A copy of the Funds' proxy voting policy and procedures is available without charge, upon request, by calling 1.888.884.2675. Information regarding how the Investment Adviser voted these proxies for the one-year period ended June 30, 2004, is available by calling the same number and on the website of the U.S. Securities and Exchange Commission at http://www.sec.gov on Form N-PX, which was filed on August 19, 2004. The Funds' voting record is also available on the Funds' website at www.firsthandfunds.com/proxy.

2004 Annual Report - 59

NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2004

10. Portfolio Holdings (unaudited)

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q will be available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1.800.SEC.0330.

ADDITIONAL INFORMATION
December 31, 2004 (unaudited)

Information about the trustees and officers* of the Funds is set forth in the following table. The Statement of Additional Information (the "SAI") includes additional information about the Funds' trustees and officers and is available free of charge, upon request, by calling 1.888.884.2675, option 2. The address for each of the persons named below is 125 South Market, Suite 1200, San Jose, CA 95113.

Name, Year	Term of		Number of
of Birth,	Office	Principal	Funds in Fund	Other
Position(s)	and Length	Occupation(s)	Complex	Trusteeships
Held With	of Time	During Past Five	Overseen by	Held by
Funds	Served (1)	Years	Trustee	Trustees
DISINTERESTED TRUSTEES
MICHAEL T.	SINCE	Mr. Lynch is a principal of	FIVE	NONE
LYNCH	1994	Rainier Wine (wine distribution)
(1961)		from March 2004 to the present.
TRUSTEE		Mr. Lynch served as VP of Sales
		and Business Development of
		AlphaOmega Soft, Inc. (a
		manufacturer of software) from
		2002 through 2003. Mr. Lynch
		served as VP of Sales and
		Business Development at Picture
		IQ Corporation (a manufacturer
		of digital imaging software) from
		1999 through 2002.
JERRY WONG	SINCE	Mr. Wong is CFO for	FIVE	NONE
(1951)	1999	Companion Worlds, Inc. (a
TRUSTEE		manufacturer of
		hardware/software to facilitate
		fitness and health maintenance)
		from June 2003 to present. Mr.
		Wong also serves as a
		consultant from October 2002 to
		present. Mr. Wong served as VP
		of Finance and EVP of U.S.
		Operations of Poet Holdings,
		Inc. (a manufacturer of software)
		from 1995 to 2002.

2004 Annual Report - 60

ADDITIONAL INFORMATION (continued)
December 31, 2004 (unaudited)

	Term of
Name, Year	Office		Number of
of Birth,	and	Principal	Funds in Fund	Other
Position(s)	Length of	Occupation(s)	Complex	Trusteeships
Held With	Time	During Past Five	Overseen by	Held by
Funds	Served (1)	Years	Trustee	Trustees
INTERESTED TRUSTEES
KEVIN M.	SINCE	Mr. Landis is President and Chief	FIVE	NONE
LANDIS (2)	1994	Investment Officer and a
(1961)		Director of Firsthand Capital
TRUSTEE/		Management, Inc. and has been
PRESIDENT		a portfolio manager with
		Firsthand Capital Management,
		Inc. since May 1994. From
		1998 through 2001, he was
		also the President and CEO of
		Silicon Capital Management
		LLC.
OFFICERS WHO ARE NOT TRUSTEES
YAKOUB	SINCE	Mr. Bellawala is VP of Business	N/A	NONE
BELLAWALA (3)	2003	Process Development for
(1965)		Firsthand Capital Management,
SECRETARY		Inc. (FCM) from August 2002 to
		present. He was VP of Business
		Development for FCM from 1999
		to 2002. He was Treasurer of
		FCM's Board of Trustees from
		1996 to 2003.
OMAR	SINCE	Mr. Billawala is COO and CFO
BILLAWALA (3)	2003	of Firsthand Capital	N/A	NONE
(1961)		Management, Inc. (FCM) from
TREASURER		1999 to present. He was also
		Secretary of FCM's Board of
		Trustees from 2000 to 2003. He
		was the COO and CFO of
		Silicon Capital Management LLC
		from 1999 to 2001.
NICK PETREDIS	SINCE	Mr. Petredis is a principal of
(1961)	2004	Petredis Law Offices from 1993	N/A	NONE
CHIEF		to present. He was Managing
COMPLIANCE		Director and Senior Counsel of
OFFICER		Firsthand Capital Management,
		Inc. from 2000 to 2001.

*	The term "officer" means the president, vice president, secretary, treasurer, chief compliance officer, controller, or any other officer who performs policy-making functions.
1	Each trustee shall serve for the lifetime of Firsthand Funds or until he dies, resigns, or is removed. Each officer shall serve a one-year term subject to annual reappointment by the trustees.
2	Mr. Landis is an interested person of the Funds by reason of his position with the Adviser.
3	Mr. Bellawala and Mr. Billawala are brothers.

2004 Annual Report - 61

 

Firsthand FundsP.O. Box 8356
Boston, MA 02266-8356
1.888.884.2675
www.firsthandfunds.com

Investment AdviserFirsthand Capital Management, Inc.
125 South Market
Suite 1200 San Jose, CA 95113
www.firsthandcapital.com

Distributor
ALPS Distributors, Inc.
1625 Broadway
Suite 2200
Denver, CO 80202

Transfer Agent
State Street Bank and Trust Company
P.O. Box 8356 Boston, MA 02266-8356
1.888.884.2675

Item 2.  Code of Ethics.

As of the end of the period, December 31, 2004, the registrant has adopted a code of ethics, as defined in Item 2(b) of Form N-CSR, that applies to the registrant's principal executive officer and principal financial officer.  The registrant has not made any amendment to its code of ethics during the covered period.  The registrant has not granted any waivers from any provisions of the code of ethics during the covered period.  A copy of the registrant's code of ethics is filed as Exhibit 11(a)(1) to this Form N-CSR.

Item 3.  Audit Committee Financial Expert.

The registrant's Board of Trustees (the "Board") has determined that the registrant has at least one "audit committee financial expert" as defined in Item 3 of Form N-CSR serving on its Audit Committee.  Mr. Jerry Wong, an independent trustee for purposes of this Item 3, was deemed qualified and agreed to serve.

Item 4.  Principal Accountant Fees and Services.

(a)        Audit Fees
For the fiscal years ending December 31, 2004 and December 31, 2003, the aggregate audit fees billed for professional services rendered by the principal accountant were $96,000 and $96,000, respectively.  The nature of the services are:  (1) auditing of the statements of assets and liabilities, related statements of operations and changes in net assets, and the financial highlights of each series of the registrant; (2) auditing and reporting on the financial statements to be included in the amendment to the registrant's registration statement on Form N-1A to be filed with the Securities and Exchange Commission; (3) review of the amendment to the registration statement; and (4) issuance of a Report on Internal Control for inclusion in the registrant's Form N-SAR.

(b)        Audit-Related Fees
For the fiscal years ending December 31, 2004 and December 31, 2003, the principal accountant did not bill the registrant any fees for assurances and related services that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item.

(c)        Tax Fees
For the fiscal years ending December 31, 2004 and December 31, 2003, the aggregate tax fees billed for professional services rendered by the principal accountant were $10,000 and $10,000, respectively.  Services include the review of income and excise tax returns for the registrant.

(d)        All Other Fees
For the fiscal year ending December 31, 2004, the aggregate fees billed for professional services rendered by the principal accounting in connection with its audit of the registrant's anti-money laundering program was $1,500.

(e)(1)   Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee Charter states the following with respect to pre-approval procedures:

The Committee hereby delegates to the Chairman of the Committee the authority to grant pre-approvals of audit and "permissible" non-audit services to be provided by the Auditors to the Funds, subject to the ratification of the full Committee at its next regularly scheduled meeting.  Both the Auditors and Fund counsel will be responsible for informing the Committee whether they believe that a particular non-audit service is permissible or prohibited pursuant to applicable regulations and standards.

The specific types of non-audit services that the Chairman may pre-approve include, but are not limited to:  reviewing the Funds' internal controls over financial reporting; providing tax-related services; reviewing and/or developing an anti-money laundering program; and issuing comfort letters, based on agreed-upon procedures, in connection with any Fund reorganization.

Pre-approval for a non-audit service provided to a Fund is not required if:  (i) the aggregate amount of all such non-audit services provided to the Fund constitutes not more than 5% of the total amount of revenues paid by the Fund to the Auditors during the fiscal year in which the non-audit services are provided; (ii) such services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and are approved by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee prior to the completion of the audit (the "De Minimus Exceptions"). 

The Committee shall also pre-approve any non-audit services proposed to be provided by the Auditors to (i) a Fund's investment adviser and (ii) any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund, if the Auditors' engagement with the investment adviser or any such control persons relates directly to the operations and financial reporting of the Fund.  The De Minimus Exceptions applies to pre-approvals under this paragraph as well, except that the "total amount of revenues" calculation is based on the total amount of revenues paid to the Auditors by the Fund and any other entity that has its services approved under this paragraph (i.e., the investment adviser or any control person).

(e)(2)   Percentages of Services
One hundred percent of the services described in each of paragraphs (b) through (d) of this Item were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)         Not applicable.

(g)        For the fiscal years ending December 31, 2004 and December 31, 2003, the aggregate non-audit fees billed for services rendered to the registrant by the principal accountant were $11,500 and $11,500, respectively.

(h)        Not applicable.

Item 5.  Disclosure of Audit Committees for Listed Companies.

Not applicable to the registrant.

Item 6.  Schedule of Investments.

Please see Item 1 of this Form.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 9.  Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

Item 10.  Submission of Matters to a Vote of Security Holders.

Registrant has not adopted any material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees.

Item 11.  Controls and Procedures.

(a)  The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.

(b)  There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12.  Exhibits.

(a)(1)   Code of Ethics referred to in Item 2.

(a)(2)               Certifications of principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act.

(b)                    Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the 1940 Act.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FIRSTHAND FUNDS

By:       /s/ Kevin M. Landis
            Kevin M. Landis
            President

Date:    February 25, 2005      

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:       /s/ Kevin M. Landis
           Kevin M. Landis
           President

Date:    February 25, 2005      

By:       /s/ Omar Billawala
           Omar Billawala
           Treasurer

Date:    February 25, 2005      

EXHIBIT INDEX

Item 12
(a)(1)   Code of Ethics referred to in Item 2.

(a)(2)   Certifications of principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act.  (EX-99.CERT)

(b)        Certifications of principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the 1940 Act.  (EX-99.906CERT)