Top 5 Zacks #1 Ranked Technology Mutual Funds

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Investors seeking long-term aggressive holdings need not look beyond mutual funds betting on the technology sector. Even though such funds experience relatively higher levels of volatility, they tend to outperform other categories when markets as a whole are seeing an uptrend. Recent results from tech firms have also shown that the sector is gearing up to enter a new era of success and prosperity. Further, fund prices are based on stronger fundamentals compared to their initial boom period, substantially reducing the risk involved.

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.

Fidelity Select Technology (FSPTX) seeks long term capital growth. The fund invests primarily in companies that develop or offer products, processes, or services that benefit significantly from technological advances. The technology mutual fund has a five year annualized return of 4.85%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.81% compared to a category average of 1.60%.

RS Technology A (RSIFX) 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 five year annualized return of 4.1%.

As of March 2012, this technology mutual fund held 68 issues, with 8.69% of its total assets invested in Apple, Inc.

DWS Technology A (KTCAX) seeks capital appreciation. The fund invests the majority of its assets in common stocks of companies in the technology domain. The fund invests in companies regardless of their size or market capitalization. The technology mutual fund has a five year annualized return of 3.08%.

The fund manager is Walter Holick and he has managed this technology mutual fund since 2009.

T. Rowe Price Global Technology (PRGTX) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund invests at least 30% of its assets in both mature and developing foreign markets. The technology mutual fund has a five year annualized return of 7.14%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.98% compared to a category average of 1.60%.

Franklin DynaTech A (FKDNX) seeks capital growth. The fund focuses on investing in companies that rely on new technologies and are leaders in innovation. The fund primarily invests in equity securities, primarily purchasing common stock. The fund may invest in foreign securities and companies of any size. The technology mutual fund has a five year annualized return of 4.94%.

The fund manager is David J. Eiswert and he has managed this technology mutual fund since 2008.

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 FSPTX

Read the analyst report on RSIFX

Read the analyst report on KTCAX

Read the analyst report on PRGTX

Read the analyst report on FKDNX



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