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.
Goldman Sachs Technology Tollkeeper A (GITAX) invests a large share of its assets in equity securities of Tollkeeper companies .These are companies that are positioned to benefit from the proliferation of technology. A maximum of 25% of its assets may be utilized to purchase foreign securities. The technology mutual fund has a five year annualized return of 8.02%.
The fund manager is Jeffrey Rabinowitz and he has managed this technology mutual fund since 2011.
Vanguard Information Technology Index (VITAX) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index by utilizing an indexing -investment approach. 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 6.38%.
The technology mutual fund has an expense ratio of 0.19% compared to a category average of 1.63%.
Franklin DynaTech A (FKDNX) focuses on investing in companies that rely on new technologies and are leaders in innovation. It 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 6.57%.
As of March 2012, this technology mutual fund held 108 issues, with 9.00% of its total assets invested in Apple, Inc.
USAA Science & Technology (USSCX) seeks capital growth over the long term. The fund invests the majority of its assets in companies which expect to gain from scientific and technological advances. A maximum of half of its assets may be utilized to purchase foreign securities from either domestic or foreign markets. The technology mutual fund has a five year annualized return of 3.8%.
The fund manager is Nicolas B. Boullet and he has managed this technology mutual fund since 2008.
Buffalo Science & Technology (BUFTX) primarily invests in common stocks of domestic companies whose securities may gain from advances in science and technology. Not more than 20% of its assets may be invested in ADRs or foreign securities. The technology mutual fund has a five year annualized return of 6.92%.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.02% compared to a category average of 1.63%.
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.
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