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.
Wells Fargo Advantage Specialized Technology A
(WFSTX) invests the majority of its assets in the technology
sector. A maximum of half of its assets are invested in foreign
equity securities. Not more than 25% of its assets may be
invested in a foreign country. This technology mutual fund is
non-diversified and has a ten year annualized return of
The technology fund has an expense ratio of 1.63% compared to
a category average of 1.53%.
T. Rowe Price Global Technology
(PRGTX) seeks capital appreciation. The fund invests a large
share of its assets in common stocks of companies from the
technology sector. It invests in at least five countries at any
given time. Foreign stocks account for 25% of the fund's
investments. The technology mutual fund has a ten year annualized
return of 11.56%.
As of June 2013, this technology mutual fund held 78 issues,
with 13.78% of its total assets invested in Apple Inc.
RS Technology A
(RSIFX) invests a large share of its assets in securities of
issued by technology companies. The fund focusses on acquiring
equity securities issued by domestic companies. However, it may
also purchase foreign securities. The technology mutual fund has
a ten year annualized return of 8.56%
The fund manager is Stephen Bishop and he has managed this
technology mutual fund since 2001.
Fidelity Select Electronics
(FSELX) seeks capital growth. The fund invests the majority of
its assets in companies whose primary operations are related to
electronics. Investments are made in both domestic and foreign
companies. The fund uses fundamental analysis to select companies
for investment purposes. The technology mutual fund has a ten
year annualized return of 4.34%
The technology fund has an expense ratio of 0.82% compared to
a category average of 1.53%.
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 7.46%.
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
View All Zacks #1 Ranked Mutual Funds
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