Zacks #1 Ranked Technology Mutual Funds - Best of Funds

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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 .

Waddell & Reed Science & Technology A (UNSCX) seeks capital growth. The fund invests a large share of its assets in securities of companies which are related to technology and science. Investments can be made regardless of the market cap of a company. The technology mutual fund has a ten year annualized return of 32.38%.

The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.

Red Oak Technology Select (ROGSX) invests in companies which are involved in primary operations of technology products and services. Usually, the fund invests in domestic market. However, sometimes it invests in foreign companies but not to a significant extent. The non-diversified technology mutual fund has a ten year annualized return of 24.25%.

As of March 2013, this technology mutual fund held 37 issues, with 5.39% of its total assets invested in Symantec Corp.

Fidelity Select Software & Computer (FSCSX) seeks capital growth. The fund invests in securities of companies which are involved in primary operations related to software or information-based services. It invests in domestic as well as in foreign companies. The technology mutual fund has a ten year annualized return of 22.75%.

The technology fund has an expense ratio of 0.80% compared to a category average of 1.56%.

Rydex Internet (RYIAX) invests the majority of its assets in domestically traded internet companies. The fund also invests in derivatives. It focuses on investing in small cap to mid-cap companies. Investments are also made in foreign internet companies and domestic government securities through ADRs. The technology mutual fund has a ten year annualized return of 21.52%.

The fund manager is Samuel Stewart Jr. and he has managed this technology mutual fund since 2008.

ProFunds Semiconductor UltraSector (SMPSX) seeks 150% returns of the Dow Jones U.S. Semiconductors Index on a daily basis. The fund invests a large share of its assets in derivatives and securities which have the potential to give returns 150% returns on index. The technology mutual fund has a ten year annualized return of 11.98%.

The technology fund has an expense ratio of 2.73% compared to a category average of 1.56%.

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 .


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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


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