Zacks #1 Ranked Technology Mutual Funds - Best of Funds

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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 Technology, Inc.

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 1.56%.

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 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.

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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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