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.
Dreyfus Technology Growth A (DTGRX) seeks capital growth. The fund invests in securities of technology companies that posses the ability to provide high earnings growth. 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 23.20%.
As of December 2013, this fund held 30 issues with 5.02% of its total assets invested in Facebook Inc.
ProFunds Semiconductor UltraSector Service (SMPSX) invests a large share of its assets in derivatives and securities which have the potential to provide 150% return of the Dow Jones U.S. Semiconductors index’s daily performance. The non-diversified fund has a five year annualized return of 23.90%.
The technology fund has an expense ratio of 2.76% compared to a category average of 2.09%.
MFS Technology A (MTCAX) invests a large share of its assets in domestic and foreign equity securities of technology companies. Those companies which stand to gain from technological advancement are selected for investment, regardless of their size. This technology mutual fund has a five year annualized return of 24.68%.
The fund manager is Matthew Sabel and he has managed this technology mutual fund since 2011.
BlackRock Science & Technology Opp Inv A (BGSAX) seeks capital growth. It invests a lion’s share of its assets in securities of companies which operate in technology and science domains. A maximum of 25% of its assets may be invested in emerging markets. The technology mutual fund has a five year annualized return of 20.19%.
As of December 2013, this technology mutual fund held 96 issues, with 4.67% of its total assets invested in Google, Inc.
Red Oak Technology Select (ROGSX) invests in companies which are involved in primary operations of technology products and services. Usually, the fund invests in the domestic market. However, it may invest in foreign companies but not to a significant extent. This technology mutual fund has a five year annualized return of 27.26%.
The fund manager is Mark W. Oelschlager and he has managed this technology mutual fund since 2006.
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.
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Read the analyst report on DTGRX
Read the analyst report on SMPSX
Read the analyst report on MTCAX
Read the analyst report on BGSAX
Read the analyst report on ROGSX
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