Technology is clearly a long term growth prospect for
investors willing to remain invested and should continue to
outperform the market over time. Many have viewed the sector with
skepticism since the tech bubble burst more than a decade ago,
but times have clearly changed for the better. Valuations are now
based on stronger fundamentals and careful selection of
investments has yielded good long term returns for many funds.
Technology mutual funds greatly reduce the volatility inherent in
this sector through by carefully selecting securities to create
widely diversified portfolios.
Below we will share with you 5 top rated technology mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
these mutual funds to outperform their peers in the future. To
view the Zacks Rank and past performance of all technology funds,
investors can click here to see the complete list of funds.
Dreyfus Technology Growth A
(DTGRX) seeks capital growth. The fund invests in securities of
technology companies that posses the ability to provide high
earnings growth. A maximum of 25% of its assets may be utilized
to purchase foreign securities. The technology mutual fund has a
five year annualized return of 23.20%.
As of December 2013, this fund held 30 issues with 5.02% of
its total assets invested in Facebook Inc.
ProFunds Semiconductor UltraSector Service
(SMPSX) invests a large share of its assets in derivatives and
securities which have the potential to provide 150% return of the
Dow Jones U.S. Semiconductors index's daily performance. The
non-diversified fund has a five year annualized return of
The technology fund has an expense ratio of 2.76% compared to
a category average of 2.09%.
MFS Technology A
(MTCAX) invests a large share of its assets in domestic and
foreign equity securities of technology companies. Those
companies which stand to gain from technological advancement are
selected for investment, regardless of their size. This
technology mutual fund has a five year annualized return of
The fund manager is Matthew Sabel and he has managed this
technology mutual fund since 2011.
BlackRock Science & Technology Opp Inv A
(BGSAX) seeks capital growth. It invests a lion's share of its
assets in securities of companies which operate in technology and
science domains. A maximum of 25% of its assets may be invested
in emerging markets. The technology mutual fund has a five year
annualized return of 20.19%.
As of December 2013, this technology mutual fund held 96
issues, with 4.67% of its total assets invested in Google,
Red Oak Technology Select
(ROGSX) invests in companies which are involved in primary
operations of technology products and services. Usually, the fund
invests in the domestic market. However, it may invest in foreign
companies but not to a significant extent. This technology mutual
fund has a five year annualized return of 27.26%.
The fund manager is Mark W. Oelschlager and he has managed
this technology mutual fund since 2006.
To view the Zacks Rank and past performance of all technology
mutual funds, investors can click here to see the complete list
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward.
Learn more about the Zacks Mutual Fund Rank.
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