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) invests a large share of its assets in securities of companies which are related to technology and science. Investments can be made regardless of the market cap of a company. The technology mutual fund has a ten year annualized return of 13.17%
The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.
Northern Technology (NTCHX) seeks capital growth on a long term basis. The fund invests the majority of its assets in companies whose principal operations are conducted in the technology sector. It may invest heavily in IPOs. The technology mutual fund has a ten year annualized return of 6.29%.
As of June 2013, this technology mutual fund held 66 issues, with 6.97% of its total assets invested in Google, Inc. Class A.
Red Oak Technology Select (ROGSX) invests in companies which are involved in primary operations of technology products and services. Usually, the fund invests in domestic market. However, sometimes it invests in foreign companies but not to a significant extent. The non-diversified technology mutual fund has a ten year annualized return of 8.17%.
The technology fund has an expense ratio of 1.30% compared to a category average of 1.54%.
Goldman Sachs Technology Tollkeeper A (GITAX) seeks capital appreciation over the long term. The fund invests a large share of its assets in equity securities of in equity securities of Tollkeeper companies. Generally, the fund purchases domestic securities. However, a maximum of 25% of its assets are invested in securities issued by foreign countries including the emerging ones. The technology mutual fund has a ten year annualized return of 8.36%.
The fund manager is Steven Barry and he has managed this technology mutual fund since 1999.
ProFunds Semiconductor UltraSector (SMPSX) invests a large share of its assets in derivatives and securities which have the potential to give returns 150% returns on Dow Jones U.S. Semiconductors index. The technology mutual fund has a ten year annualized return of -1.16%.
The technology fund has an expense ratio of 2.73% compared to a category average of 1.54%.
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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