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.
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 37.13%.
The technology fund has an expense ratio of 2.75% compared to a category average of 2.09%.
T. Rowe Price Global Technology (PRGTX) seeks capital appreciation. The fund invests a large share of its assets in common stocks of companies from the technology sector. It invests in at least five countries at any given time. Foreign stocks account for 25% of the fund’s investments. The technology mutual fund has a five year annualized return of 23.17%.
As of June 2013, this technology mutual fund held 78 issues, with 13.78% of its total assets invested in Apple 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 domestic market. However, sometimes it invests in foreign companies but not to a significant extent. The non-diversified technology mutual fund has a five year annualized return of 21.42%.
The fund manager is Mark W. Oelschlager and he has managed this technology mutual fund since 2006.
Fidelity Select Electronics (FSELX) seeks capital growth. The fund invests the majority of its assets in companies whose primary operations are related to electronics. Investments are made in both domestic and foreign companies. The fund uses fundamental analysis to select companies for investment purposes. The technology mutual fund has a five year annualized return of 18.05%.
The technology fund has an expense ratio of 0.82% compared to a category average of 1.53%.
RS Technology A (RSIFX) invests a large share of its assets in securities of issued by technology companies. The fund focuses on acquiring equity securities issued by domestic companies. However, it may also purchase foreign securities. The technology mutual fund has a five year annualized return of 22.02%
The fund manager is Stephen J. Bishop and he has managed this technology mutual fund since 2011.
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 INPSX
Read the analyst report on PRGTX
Read the analyst report on ROGSX
Read the analyst report on FSELX
Read the analyst report on RSIFX
View All Zacks #1 Ranked Mutual Funds
Zacks Investment Research