Top 5 Zacks #1 Ranked Technology Mutual Funds

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Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.

Below we will share with you 5 top 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.

Waddell & Reed Science & Technology A (UNSCX) seeks capital appreciation. The fund invests the majority of its assets in science and technology companies. The fund focuses on investing in companies regardless of their sizes. It may invest a substantial part of its assets in foreign instruments. The technology mutual fund has a one year annualized return of 20.32%.

The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.

HighMark NYSE ArcaTech 100 Index A (PPTIX) invests in nearly all of the securities which make up the NYSE Arca Tech 100 Index in nearly the same proportion. A minimum of 90% of its assets are invested in securities included in the index. The technology mutual fund has a one year annualized return of 9.34%.

As of February 2013, this technology mutual fund held 102 issues, with 4.84% of its total assets invested in International Business Machines Corp.

VALIC Company I Science & Technology (VCSTX) seeks capital growth over the long term. It invests the majority of its assets in science and technology companies. A maximum of 50% of its assets may be utilized to purchase foreign securities. Not more than 15% of its assets can be invested in any single emerging market country. The technology mutual fund has a one year annualized return of 0.55%.

The technology mutual fund has an expense ratio of 1.01% compared to a category average of 1.60%.

Henderson Global Technology A (HFGAX) invests heavily in companies related to the technology sector. The fund purchases both domestic and foreign securities. It holds securities from issuers located in at least three countries, including the US. The technology mutual fund has a one year annualized return of -2.51%.

The fund manager is Ian Warmerdam and he has managed this technology mutual fund since 2001.

Firsthand Technology Opportunities (TEFQX) seeks capital appreciation over the long term. The fund invests a large share of its assets in companies which utilize a high degree of cutting edge engineering or scientific knowledge in its operations. The technology mutual fund has a one year annualized return of -2.52%.

The technology mutual fund has an expense ratio of 1.85% compared to a category average of 1.60%.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank.

Read the analyst report on UNSCX

Read the analyst report on PPTIX

Read the analyst report on VCSTX

Read the analyst report on HFGAX

Read the analyst report on TEFQX



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