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 .

Fidelity Select Electronics (FSELX) seeks capital growth. The fund invests the majority of its assets in companies whose primary operations are related to electronics. It invests in both U.S. and non U.S. companies. Factors such as financial strength, economic condition and industry position are taken into consideration before investing. The non-diversified technology mutual fund has a three year annualized return of 17.60%.

This fund has an expense ratio of 0.79% as compared to category average of 1.50%.

BlackRock Science & Technology Opportunities Investor A (BGSAX) invests a major portion of its assets in companies from technology and science sector which are expected to attain sustainable growth by utilizing advanced technology. A maximum of 25% of its assets may be invested in companies from emerging economies. It may also invest in private securities. The technology mutual fund has a three year annualized return of 12.84%.

Thomas Callan is the fund manager and has managed the fund since 2000.

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 the technology and science sector. It invests in companies which use technological advancement to achieve growth. It may invest in companies of any market capitalization irrespective of their location. The technology mutual fund has a three year annualized return of 24.51%.

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

Fidelity Select Computers Portfolio (FDCPX) invests a lion's share of its assets in companies whose primary operation is related to hardware technology in computer sector. It considers factors such as financial, economic and market conditions to invest in companies all over the globe. The non-diversified technology mutual fund has a three year annualized return of 13.99%.

This fund has an expense ratio of 0.82% as compared to category average of 1.50%.

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 the Internet. The non-diversified technology mutual fund has a three year annualized return of 25.58%.

Charles Lowery is the fund manager and has managed the fund since 2013.

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
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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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