Best Rated Technology Mutual Funds to Buy Now - Mutual Fund Commentary
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 best 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.
Columbia Seligman Communications & Information A (SLMCX) seeks capital growth over the long run. The fund invests a major portion of its assets in companies engaged in operations related to communications and the information sector. It may also invest in sectors such as information technology and media. It invests a maximum of 25% of its assets in non U.S. companies. The non-diversified technology mutual fund has a five year annualized return of 13.3%.
As of January 2015, this fund held 61 issues with 8.65% invested in Lam Research Corp.
Fidelity Select Electronics Portfolio (FSELX) invests a lion’s share of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies. The fund uses fundamental analysis to select companies for investment purposes. The non-diversified technology mutual fund has a five year annualized return of 16.6%.
Stephen Barwikowski is the fund manager and has managed the fund since 2009.
USAA Science & Technology (USSCX) seeks long-term capital growth. It invests a large portion of its assets in companies which are expected to gain from science and technology advancement. It may invest a maximum of half of its assets in stocks of foreign companies that are traded in the U.S. or non-U.S. markets. The technology mutual fund has a five year annualized return of 18.2%.
This fund has an expense ratio of 1.24% as compared to category average of 1.54%.
Buffalo Discovery (BUFTX) invests in equities of companies that use technological development and advancement to enhance its value. Although it invests in domestic firms, it may also invest a maximum of 20% of its assets in non U.S. companies through ADRs and other securities that are traded in the U.S. The technology mutual fund has a five year annualized return of 16.8%.
As of December 2014, this fund held 73 issues with 3.38% invested in Hospira Inc.
Deutsche Science and Technology A (KTCAX) seeks capital appreciation. It invests heavily in companies related to the technology sector. The fund primarily invests in domestic companies. A maximum of 35% of its assets may be utilized to purchase foreign securities including that from emerging nations. It may also invest in IPOs. The non-diversified technology mutual fund has a five year annualized return of 12.9%.
This fund has an expense ratio of 0.99% as compared to category average of 1.54%.
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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