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.

 RS Technology A (RSIFX) seeks capital growth over the long term. The fund invests a large share of its assets in equity securities of technology companies. It concentrates on purchasing securities of small and mid-cap companies. The fund invests heavily in domestic companies but may also purchase foreign securities. The technology mutual fund has a three year annualized return of 33.32%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.53% compared to a category average of 1.62%.

Firsthand Technology Opportunities (TEFQX) invests the majority of its assets in companies whose primary operations are related to high technology. The fund selects companies on the basis of their growth potential in their specific sector. The technology mutual fund has a three year annualized return of 29.05%.

The fund manager is Han M. Lee and he has managed this technology mutual fund since 2009.

Matthews Asia Science & Technology Investor (MATFX) seeks long term capital growth. The fund invests heavily in companies located in Asia which generate more than half of their revenues from product and services sales in technology related industries and services. The technology mutual fund has a three year annualized return of 25.93%.

As of December 2011, this technology mutual fund held 63 issues, with 7.00% of its total assets invested in Baidu, Inc. ADR.

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 three year annualized return of 28.31%.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.08% compared to a category average of 1.62%.

Dreyfus Technology Growth A (DTGRX) seeks capital appreciation. The fund invests a large share of its assets are invested in companies who are producers in the technology sector or seeking to benefit from advances in this domain. The technology mutual fund has a three year annualized return of 30.27%.

The fund manager is Barry Mills and he has managed this technology mutual fund since 2007.

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 at http://www.zacks.com/funds.

Read the analyst report on RSIFX

Read the analyst report on TEFQX

Read the analyst report on MATFX

Read the analyst report on PPTIX

Read the analyst report on DTGRX



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