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 .

T. Rowe Price Global Technology (PRGTX) seeks capital appreciation over the long run. It invests a lion's share of its assets in companies that uses technological development and advancement to earn revenues. It invests in a minimum of five countries. It also invests 25% of its assets outside domestic boundary. Factors such as growth prospects and valuations of stocks are considered to select investment. The technology mutual fund has a three year annualized return of 18.80%.

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

Fidelity Select Software & Computer Portfolio (FSCSX) invests a major portion of its assets 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. The technology mutual fund has a three year annualized return of 18.76%.

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

USAA Science & Technology (USSCX) seeks long term capital growth. It invests a large portion of its assets in companies which are expected to gain from science and technology advancement. It invests a maximum of half of its assets in foreign companies. The technology mutual fund has a three year annualized return of 18.08%.

As of April 2014, this fund held 153 issues with 5.63% invested in Apple Inc.

Fidelity Select Wireless Portfolio (FWRLX) invests a large share of its assets in common stocks of companies whose primary operations are related to wireless communications services or products. It invests in both U.S. and non U.S. firms. It considers factors such as financial strength and economic conditions for investment. The non-diversified technology mutual fund has a three year annualized return of 11.64%.

This fund has an expense ratio of 0.86% as compared to category average of 1.38%.

Matthews Asia Science & Technology Investor (MATFX) seeks capital growth over the long term. The fund invests the majority of its assets in companies located in Asia which generate more than half of their revenues from product and services sales in technology related industries and services. The technology mutual fund has a three year annualized return of 10.85%.

J. Michael Oh is the fund manager and has managed the 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 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
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 (PRGTX): Fund Analysis Report

Get Your Free (FSCSX): Fund Analysis Report

Get Your Free (USSCX): Fund Analysis Report

Get Your Free (FWRLX): Fund Analysis Report

Get Your Free (MATFX): 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

139,392,686
  • $5.41 ▼ 18.52%
108,086,733
  • $17.04 ▲ 1.61%
88,411,032
  • $42.085 ▼ 1.19%
35,897,863
  • $101.79 ▲ 0.21%
34,635,836
  • $46.68 ▲ 0.34%
31,162,075
  • $4.36 ▲ 12.37%
31,086,421
  • $26.21 ▲ 0.61%
30,930,862
  • $17.09 ▼ 2.95%
As of 9/18/2014, 04:15 PM

Find a Credit Card

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