4 Technology Mutual Funds to Gain Big
Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than the others due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and AI are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors opt for a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. Social media and Internet companies are now part of the technology landscape.
Below we share with you four top-ranked technology mutual funds. Each has earned 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 funds.
Fidelity Select Wireless Portfolio FWRLX fund aims for capital appreciation. The fund invests the majority of its assets in securities of companies that are engaged in activities relating to wireless communications services or products. FWRLX has three-year annualized returns of 13.6%.
As of July 2019, FWRLX held 50 issues with 18.56% of its assets invested in Apple Inc.
T. Rowe Price Communications & Technology Fund PRMTX invests heavily in securities of communications and technology companies. PRMTX may invest in securities of U.S. as well as non-U.S. companies. These companies can be involved in a variety of Internet-related industries such as e-commerce and digital products, and services firms, media, including publishing, advertising, broadcasting, and cable and satellite TV companies among others. PRMTX has three-year annualized returns of 17.6%.
PRMTX has an expense ratio of 0.78% as compared to the category average of 1.29%.
Fidelity Select Software and IT Services Portfolio FSCSX fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. FSCSX has three-year annualized returns of 22.4%.
As of July 2019, FSCSX held 69 issues with 25.2% of its assets invested in Microsoft Corp.
Janus Henderson Global Technology Fund Class D JNGTX seeks appreciation of capital in the long run. The fund invests the majority of in companies that are expected to benefit from technological advancement. JNGTX invests in equity securities of both American and foreign companies that have impressive growth prospects. The fund also invests about two-fifths of its assets in securities of companies that are economically tied to different countries across the globe, excluding the United States. JNGTX has three-year annualized returns of 23.5%.
Denny Fish is the fund manager of JNGTX since 2016.
To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.
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