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 Service
(INPSX) invests in securities and derivatives with an objective
to generate return investment results which are 150% of the daily
performance of the Dow Jones Internet Composite Index. This
technology mutual fund is non-diversified and has a five year
annualized return of 53.19%.
The technology fund has an expense ratio of 2.75% compared to
a category average of 2.08%.
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. The technology mutual fund has a
five year annualized return of 27.28%.
As of September 2013, this technology mutual fund held 77
issues, with 8.37% of its total assets invested in Micron
Firsthand Technology Opportunities
(TEFQX) invests a large share of its assets in companies which
utilize a high degree of cutting edge engineering or scientific
knowledge in its operations. The fund invests in companies
regardless of their size. The technology mutual fund has a five
year annualized return of 29.27%.
The fund manager is Kevin M. Landis and he has managed this
technology mutual fund since 1999.
Fidelity Select Technology
(FSPTX) seeks capital growth. The fund invests in securities of
companies which are operating in the technology domain. It may
also invest in companies who are poised to gain from
technological improvements. The technology mutual fund has a five
year annualized return of 29.85%.
The technology fund has a minimum initial investment of $2,500
and an expense ratio of 0.76% compared to a category average of
RS Technology A
(RSIFX) invests a large share of its assets in securities of
issued by technology companies. The fund focuses on acquiring
equity securities issued by domestic companies. However, it may
also purchase foreign securities. This technology mutual fund has
a five year annualized return of 29.78%.
The fund manager is Stephen J. Bishop and he has managed this
technology mutual fund since 2001.
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.
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