Technology stocks are soaring. Money is being poured into low-cost exchange-traded funds. And these funds are piling into companies like Facebook, Apple, Amazon, Netflix and Google — known as the FANG stocks for the companies’ first initials.

That is putting stock pickers at traditional mutual funds into an existential crisis.

They are finding it ever more difficult to beat the broader market, especially as FANG stocks outpace the rest.

The New York Times spoke with Parnassus Investments, a mutual fund manager that invests mostly in large American companies. Parnassus maintains that the rise of these technology stocks is the result of “mindless buying.”

Still, fears remain about the rise of machines and such passive investing distorting the market, not the least because Amazon, with its deal for Whole Foods, poses a threat to several companies in which Parnassus owns stock.

The team at Parnassus — where business suits and ties prevail despite being based in the tech hub of San Francisco — has chosen instead to bet on other areas like life sciences.

“There is a herd mentality out there,” argues Benjamin E. Allen, a partner on the Parnassus equity fund. “People are buying stocks irrespective of valuations — if we can’t do the math, we are just not going to own it.”

Fed Divided On Debt Holdings

Exuberant investors are also creating concerns at the Federal Reserve.

The Fed has published a plan for paring its holdings of $4 trillion in Treasuries and mortgage-backed securities, which it acquired after the financial crisis to reduce borrowing costs for businesses and consumers. But it isn’t clear how soon it wants to start, because the market doesn’t seem to be responding to recent rate increases and inflation remains sluggish.

Some Fed officials want to start within a few months, while others want to hold off until the end of the year, according to the minutes of their most recent meeting in June.

The concern is that it has become cheaper and easier to borrow money in some cases — not what the Fed intended — and there is some evidence of investors taking larger risks. William Dudley, the president of the Federal Reserve Bank of New York, has suggested raising rates more quickly if markets don’t respond to rate increases.

Konica Minolta Nears Deal for U.S. Genetics Company

It is known for making photocopiers and printers, but the Japanese company Konica Minolta has its eye on the health care industry and expanding abroad.

Konica Minolta is close to announcing a $900 million deal to buy Ambry Genetics, an American testing company, in what would be its largest acquisition, The Times reports, citing two people with knowledge of the talks.

The Japanese government is lending a helping hand: A state-backed investment fund is teaming with Konica Minolta to take a 40 percent share in the testing company. Konica Minolta will be following in the footsteps of other Japanese companies, notably Fujifilm, in its efforts to diversify as revenue and profit shrink in its core business.

Ambry, which specializes in genetic testing and analyzing databases of genetic information to screen for diseases, made information public last year that was based on data from thousands of people it had tested. It said the move would aid drug research and other efforts to combat diseases.