Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies, such as artificial intelligence, machine learning, robotics and data science are the key catalysts to the sector’s growth.
In addition, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. Technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.
Below, we share with you three technology mutual funds, viz Fidelity Select Semiconductors FSELX, DWS Science and Technology Fund KTCAX and Janus Henderson Glb Tech and Innovt JNGTX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of technology funds.
Fidelity Select Semiconductors fund seeks capital appreciation. FSELX invests in common stocks and in securities of companies principally engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors.
Fidelity Select Semiconductors has three-year annualized returns of 26.1%. As of May 2023, FSELX held 40 issues, with 25% of its assets invested in NVIDIA.
DWS Science and Technology Fund seeks growth of capital by investing most of its assets in common stocks of U.S. companies in the technology sector. KTCAX advisors use in-depth research to select a diverse portfolio of technology companies that have robust and sustainable earnings growth, large and growing markets, leading products and services and strong balance sheets.
DWS Science and Technology Fund has three-year annualized returns of 8.8%. Sebastian P. Werner has been one of the fund managers of KTCAX since December 2017.
Janus Henderson Glb Tech and Innovt invests most of its assets along with borrowings, if any, in domestic and foreign equity securities of companies that, according to the portfolio manager, will benefit significantly from improvements in technology. JNGTX advisors choose to invest in companies based on their growth potential.
Janus Henderson Glb Tech and Innovt has three-year annualized returns of 6.2%. JNGTX has an expense ratio of 0.78% compared with the category average of 30%.
To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.
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Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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