Zacks #1 Ranked Technology Mutual Funds - Best of Funds

By
A A A

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.

ProFunds Internet UltraSector (INPSX) seeks to provide daily returns equivalent to 150% of the Dow Jones Internet Composite Index's performance. This index tracks performance of US stocks that derive bulk of their revenues from Internet. This non-diversified fund has a three-year annualized return of 16.22%.

The fund has an expense ratio of 2.75% as compared to category average of 2.06%.

Fidelity Select Software & Computer (FSCSX) seeks capital growth. The fund invests in securities of companies whose primary operations are related to software or information-based services. It invests in domestic as well as in foreign companies using both fundamental analysis as well as considering market and economic factors. This non-diversified fund has a three-year annualized return of 17.26%.

Brian Lempel is the fund manager and has managed this fund since 2009.

Waddell & Reed Science & Technology A (UNSCX) seeks capital appreciation. 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. This fund has a three-year annualized return of 18.04%.

As of March 2014, this fund held 66 issues with 8.37% of its assets invested in Micron Technology Inc.

T. Rowe Price Global Technology (PRGTX) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund invests at least 30% of its assets in both mature and developing foreign markets. This fund has a three-year annualized return of 14.43%.

The fund has an expense ratio of 0.95% as compared to category average of 1.50%.

DWS Technology A (KTCAX) seeks capital appreciation. It invests heavily in companies related to the technology sector. The fund primarily invests in domestic securities. A maximum of 35% of its assets may be utilized to purchase foreign securities. This fund has a three-year annualized return of 8.40%.

Frederic Fayolle is the fund manager and has managed the fund since 2009.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>


View All Zacks #1 Ranked Mutual Funds
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (FSCSX): Fund Analysis Report

Get Your Free (INPSX): Fund Analysis Report

Get Your Free (KTCAX): Fund Analysis Report

Get Your Free (PRGTX): Fund Analysis Report

Get Your Free (UNSCX): Fund Analysis Report

To read this article on Zacks.com click here.

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


Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

112,007,213
  • $14.79 ▼ 2.12%
79,492,830
  • $17.05 ▲ 0.24%
63,236,947
  • $56.63 ▲ 7.54%
55,553,482
  • $3.41 ▼ 3.94%
53,662,885
  • $14.19 ▼ 3.47%
52,606,858
  • $100.75 ▲ 0.64%
39,074,810
  • $4.84 ▼ 2.22%
38,681,912
  • $25.62 ▲ 0.79%
As of 9/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com