More often than not the technology sector is likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and fairly longer investment horizon should park their savings in these funds.
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) 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 Jeffrey Rabinowitz and he has managed this technology mutual fund since 2011.
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 11.98%.
As of April 2013, this technology mutual fund held 44 issues, with 21.10% of its total assets invested in Intel Corp
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 8.27%.
The technology fund has an expense ratio of 1.25% compared to a category average of 1.56%.
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 32.38%.
The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.
Red Oak Technology Select (ROGSX) seeks capital appreciation on a long terms basis. The fund 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 24.25%.
The technology fund has an expense ratio of 1.30% compared to a category average of 1.56%.
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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