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 for 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 T. Rowe Price Science & Tech PRSCX. 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 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 19.2%. As of August 2024, FSELX held 36 issues, with 24.8% of its assets invested in NVIDIA Corp.
DWS Science and Technology Fund seeks growth of capital by investing most of its assets in the 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 11.9%. Sebastian P. Werner has been one of the fund managers of KTCAX since December 2017.
T. Rowe Price Science & Tech fund seeks long-term capital growth by investing in common stocks of companies expected by T. Rowe Price to benefit from the development, advancement, and use of science and technology. PRSCX advisors invest in foreign stocks, futures and options.
T. Rowe Price Science & Tech has three-year annualized returns of 11.8%. PRSCX has an expense ratio of 0.79% compared with the category average of 1.05%.
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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