Risk takers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. The technology sector is believed to be poised for a brighter earnings performance than others, owing to innovation and greater demand. Improving industry fundamentals and emerging technologies, such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence, are the key catalysts for the sector.
Most mutual funds investing in securities from these sectors prefer a growth-oriented approach, focusing on companies with strong fundamentals and relatively higher investment prospects. Technology now has broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.
Below, we share with you three top-ranked Technology mutual funds, namely T. Rowe Price Science & Tech PRSCX, Fidelity Select Technology FSPTX and Franklin DynaTech FKDNX. 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.
T. Rowe Price Science & Tech invests in companies expected to benefit from the development and use of science and technology. PRSCX typically invests in U.S.-based common stocks. However, it may also invest in foreign stocks.
T. Rowe Price Science & Tech has three-year annualized returns of 34.8%. As of December 2025, PRSCX held 126 issues, with 10% of its assets invested in Nvidia.
Fidelity Select Technology aims for capital appreciation by investing the majority of its net assets in common stocks of domestic and foreign companies that benefit significantly from technological advances and improvements. FSPTX uses fundamental analysis, like financial condition, industry position and market conditions to select investments.
Fidelity Select Technology has three-year annualized returns of 36.6%. FSPTX has an expense ratio of 0.61%.
Franklin DynaTech mainly invests in common stocks of innovative, well-managed companies benefiting from technological and industry changes, across sectors and market caps, both in the United States and internationally.
Franklin DynaTech has three-year annualized returns of 26.4%. Rupert H. Johnson Jr. has been one of the fund managers of FKDNX since 1968.
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 mutual funds.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
