Top 5 Zacks#1 Ranked Technology Mutual Funds - Best of Funds

By Zacks.com September 07, 2012, 04:32:01 PM EDT

More often than not the technology sector is likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and fairly longer investment horizon should park their savings in these funds.

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 .

T. Rowe Price Science & Tech ( PRSCX ) invests a large share of its assets in common stocks of firms which are projected to gain from advances in science and technology. The fund may purchase both domestic and foreign securities. The technology mutual fund is non-diversified and has a five year annualized return of 2.05%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.90% compared to a category average of 1.59%.

Black Oak Emerging Technology ( BOGSX ) seeks capital appreciation over the long term. The fund invests the majority of its assets in common stocks of firms that are expected to emerge as market leaders in the technology sector. The technology mutual fund has a five year annualized return of 2.1%.

The fund manager is Robert D. Stimpson and he has managed this technology mutual fund since 2006.

HighMark NYSE ArcaTech 100 Index A ( PPTIX ) invests in nearly all of the securities which make up the NYSE Arca Tech 100 Index in nearly the same proportion. A minimum of 90% of its assets are invested in securities included in the index. The technology mutual fund has a five year annualized return of 5.03%.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.08% compared to a category average of 1.59%.

Waddell & Reed Science & Technology A ( UNSCX ) seeks capital appreciation. The fund invests the majority of its assets in science and technology companies. The fund focuses on investing in mid and small-cap companies but may also invest in larger firms. The technology mutual fund has a five year annualized return of 5.57%.

As of June 2012, this technology mutual fund held 76 issues, with 8.46% of its total assets invested in Aspen Technologies, Inc.

Columbia Seligman Global Technology A ( SHGTX ) invests a large share of its assets in domestic and foreign equity securities of technology companies and those with operations in related areas. The fund invests in firms without regard to their market capitalization. The technology mutual fund has a five year annualized return of 2.88%.

The fund manager is Richard Parower and he has managed this technology mutual fund since 2000.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds .

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 at http://www.zacks.com/funds .


View All Zacks #1 Ranked Mutual Funds
 
(BOGSX): ETF Research Reports
 
(PPTIX): ETF Research Reports
 
(PRSCX): ETF Research Reports
 
(SHGTX): ETF Research Reports
 
(UNSCX): ETF Research Reports
 
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Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Mutual Funds

Referenced Stocks: BOGSX, PPTIX, PRSCX, SHGTX, UNSCX



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