Top 5 Zacks #1 Ranked Technology Mutual Funds

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More often than not the technology sector is more 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 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.

Red Oak Technology Select (ROGSX) seeks capital appreciation. The fund invests the majority of its assets in common stocks of firms that are heavily dependent on technology for their operations or product development activities. The technology mutual fund has a five year annualized return of 6.88%.

The technology mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.32% compared to a category average of 1.62%.

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 five year annualized return of 5.31%.

As of December 2011, this technology mutual fund held 102 issues, with 10.43% of its total assets invested in Apple, Inc.

Northern Technology (NTCHX) seeks capital growth over the long term. The fund invests a large share of its assets in companies whose principal operations are conducted in the technology sector. The technology mutual fund has a five year annualized return of 4.54%.

The fund manager is Deborah Koch and he has managed this technology mutual fund since 2004.

Columbia Seligman Global Technology A (SHGTX) invests the majority of its assets in domestic and foreign equity securities of technology companies and those with operations in related areas. The fund invests in firms without regard to their market capitalization. The technology mutual fund has a five year annualized return of 5.91%.

The technology mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.49% compared to a category average of 1.62%.

Vanguard Information Technology Index (VITAX) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index. The fund invests almost all its assets in equity securities which are included in the index. The technology mutual fund has a five year annualized return of 5.03%.

The fund manager is Michael Perre and he has managed this technology mutual fund since 2004.

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 ROGSX

Read the analyst report on PPTIX

Read the analyst report on NTCHX

Read the analyst report on SHGTX

Read the analyst report on VITAX



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