Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than others owing to innovation and greater demand. Improving industry fundamentals and emerging technologies — such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence — are the key catalysts for the sector.
Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach, which includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology now has broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.
Below we share with you three Top-Ranked Dimensional mutual funds, viz., Fidelity Advisor Semiconductors Fund Class I FELIX, Franklin DynaTech Fund Class A FKDNX, Janus Henderson Global Technology and Innovation Fund Class D JNGTX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of technology funds.
Fidelity Advisor Semiconductors Fund Class I fund seeks capital appreciation by investing primarily in common stocks. FELIX invests most of its assets in securities of companies engaged in the design and manufacture of semiconductors and semiconductor equipment from domestic and foreign issuers.
Fidelity Advisor Semiconductors Fund Class I fund has three-year annualized returns of 38.2%. As of the end of January 2022, FELIX held 51 issues with 21.47% of its assets invested in NVIDIA Corp.
Franklin DynaTech Fund Class A fund seeks long-term capital appreciation. FKDNX invests mostly in the common stock of companies both inside and outside of the United States that are leaders in innovation, take advantage of new technologies, have superior management, and gains from new industry conditions in the rapidly changing global economy.
Franklin DynaTech Fund Class A fund has three-year annualized returns of 22.5%. FKDNX has an expense ratio of 0.85% compared with the category average of 0.99%.
Janus Henderson Global Technology and Innovation Fund Class D fund aims for long-term capital appreciation. JNGTX invests a large chunk of its assets primarily in equity of companies in US and foreign selected based on growth potential. It invests a part of its net assets in securities of issuers or companies that are economically tied to different countries throughout the world, excluding the United States.
Janus Henderson Global Technology and Innovation Fund Class D fund have three-year annualized returns of 23.1%. Denny Fish has been one of the fund managers of JNGTX since 2016.
To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.
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