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.
Manning & Napier Technology Series (EXTCX) invests the majority of its assets in companies from the technology sector. The fund focusses on acquiring common stocks. It may also invest in companies which rely heavily on new technology to develop products or for operational purposes. It may invest in both domestic and foreign stocks as well as ADRS. The technology mutual fund has a five year annualized return of 18.98%.
The fund manager is Jeffrey Donlon and he has managed this technology mutual fund since 2004.
Dreyfus Technology Growth A (DTGRX) seeks capital growth. The fund invests in securities of technology companies which have high earnings growth prospects. 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 20.68%.
The technology fund has an expense ratio of 1.45% compared to a category average of 1.53%.
Firsthand Technology Opportunities (TEFQX) invests a large share of its assets in companies which utilize a high degree of cutting edge engineering or scientific knowledge in its operations. The fund invests in companies regardless of their size. The technology mutual fund has a five year annualized return of 23.54%.
The fund manager is Kevin M. Landis and he has managed this technology mutual fund since 1999.
Waddell & Reed Science & Technology A (UNSCX) seeks capital appreciation. The fund 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 five year annualized return of 23.58%
As of June 2013, this technology mutual fund held 76 issues, with 7.71% of its total assets invested in Micron Technology, Inc.
ProFunds Internet UltraSector Service (INPSX) invests in securities and derivatives with an objective to generate return investment results which are 150% of the daily performance of the Dow Jones Internet Composite Index. This technology mutual fund is non-diversified and has a five year annualized return of 42.08%.
The technology fund has an expense ratio of 2.75% compared to a category average of 2.09%.
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.
Read the analyst report on EXTCX
Read the analyst report on DTGRX
Read the analyst report on TEFQX
Read the analyst report on UNSCX
Read the analyst report on INPSX
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