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4 Funds to Gain as Digital Transition Boosts Cloud Space
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The remote working trend has played a significant role in speeding up digitization, and cloud computing is acting as a catalyst to this change. This shift to remote working has increased the demand for various cloud computing services like infrastructure, storage and data security. In fact, workplace collaboration and monitoring tools have become essential for businesses to help connect and monitor their workforce in the wake of the coronavirus-led lockdowns.
Several companies have faced difficulty in remaining operational at maximum capacity due to social distancing norms, but digital transition kept many afloat even during the slump. And this is making virtual office a part of the new normal. With workspace now going virtual, cloud computing has become one of the most coveted innovations among technology companies. Technology firms are spending millions on the development of cloud technology as demand for high storage capacity and processing horsepower increases every day.
Per a ResearchAndMarkets.com report, the global cloud computing market size is projected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5%. Organizations are keen on migrating their infrastructure to cloud due to its lower hardware cost, increased flexibility, real-time collaboration, intelligent applications and a more streamlined user experience.
Even after the pandemic is over, the cloud technology adoption is expected to see robust growth. The transition can be seen especially in sectors where the work-from-home initiative is not only helping sustain enterprise business functions but also reshaping the working pattern of the company.
And, why not? Months into the new normal of remote working, organizations have shifted focus on benefits of the trend that highlights increased flexibility, real-time collaboration, intelligent applications and a more streamlined user experience.
4 Funds to Buy
We have thus, highlighted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and invest in companies that can make the most of the robust growth in cloud computing. Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. The fund invests the most of its assets in the common stocks of companies that its managers expect will generate the majority of their revenues from the development, advancement, and use of technology. PRGTX is a non-diversified fund and has returned 22.9% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRGTX has an annual expense ratio of 0.88%, which is below the category average of 1.29%. The fund has a minimum initial investment of $2,500. Some of the fund’s top clouds computing stock holdings are Alibaba, Workday and salesforce.com.
DWS Science and Technology Fund - Class A (KTCAX - Free Report) aims for capital growth. The fund invests the majority of its assets in common stocks of science and technology companies. KTCAX is a non-diversified fund and has returned 17.6% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
KTCAX has an annual expense ratio of 0.93%, which is below the category average of 1.29%. The fund has a minimum initial investment of $1,000. Some of the fund’s top cloud computing stock holdings are Microsoft, Alphabet and Amazon.
Franklin DynaTech Fund Advisor Class (FDYZX - Free Report) aims for capital appreciation. The fund invests primarily in equity securities especially common stocks of companies that the fund manager believes are leaders in innovation and takes advantage of new technologies. FDYZX has returned 20.9% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDYZX has an annual expense ratio of 0.61%, which is below the category average of 1.05%. The fund has no minimum initial investment. Some of the fund’s top cloud computing stock holdings are Microsoft, Amazon and ServiceNow.
Janus Henderson Global Technology and Innovation Fund Class T (JAGTX - Free Report) aims for long-term growth of capital. The fund invests the majority of its assets in securities of companies that the fund managers believe will significantly benefit from advances in technology. JAGTX has returned nearly 25% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
JAGTX has an annual expense ratio of 0.93%, which is below the category average of 1.29%. The fund has a minimum initial investment of $2,500. Some of the fund’s top clouds computing stock holdings are Microsoft, Adobe Systems and salesforce.com.
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4 Funds to Gain as Digital Transition Boosts Cloud Space
The remote working trend has played a significant role in speeding up digitization, and cloud computing is acting as a catalyst to this change. This shift to remote working has increased the demand for various cloud computing services like infrastructure, storage and data security. In fact, workplace collaboration and monitoring tools have become essential for businesses to help connect and monitor their workforce in the wake of the coronavirus-led lockdowns.
Several companies have faced difficulty in remaining operational at maximum capacity due to social distancing norms, but digital transition kept many afloat even during the slump. And this is making virtual office a part of the new normal. With workspace now going virtual, cloud computing has become one of the most coveted innovations among technology companies. Technology firms are spending millions on the development of cloud technology as demand for high storage capacity and processing horsepower increases every day.
Per a ResearchAndMarkets.com report, the global cloud computing market size is projected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5%. Organizations are keen on migrating their infrastructure to cloud due to its lower hardware cost, increased flexibility, real-time collaboration, intelligent applications and a more streamlined user experience.
Even after the pandemic is over, the cloud technology adoption is expected to see robust growth. The transition can be seen especially in sectors where the work-from-home initiative is not only helping sustain enterprise business functions but also reshaping the working pattern of the company.
And, why not? Months into the new normal of remote working, organizations have shifted focus on benefits of the trend that highlights increased flexibility, real-time collaboration, intelligent applications and a more streamlined user experience.
4 Funds to Buy
We have thus, highlighted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and invest in companies that can make the most of the robust growth in cloud computing. Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. The fund invests the most of its assets in the common stocks of companies that its managers expect will generate the majority of their revenues from the development, advancement, and use of technology. PRGTX is a non-diversified fund and has returned 22.9% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRGTX has an annual expense ratio of 0.88%, which is below the category average of 1.29%. The fund has a minimum initial investment of $2,500. Some of the fund’s top clouds computing stock holdings are Alibaba, Workday and salesforce.com.
DWS Science and Technology Fund - Class A (KTCAX - Free Report) aims for capital growth. The fund invests the majority of its assets in common stocks of science and technology companies. KTCAX is a non-diversified fund and has returned 17.6% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
KTCAX has an annual expense ratio of 0.93%, which is below the category average of 1.29%. The fund has a minimum initial investment of $1,000. Some of the fund’s top cloud computing stock holdings are Microsoft, Alphabet and Amazon.
Franklin DynaTech Fund Advisor Class (FDYZX - Free Report) aims for capital appreciation. The fund invests primarily in equity securities especially common stocks of companies that the fund manager believes are leaders in innovation and takes advantage of new technologies. FDYZX has returned 20.9% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FDYZX has an annual expense ratio of 0.61%, which is below the category average of 1.05%. The fund has no minimum initial investment. Some of the fund’s top cloud computing stock holdings are Microsoft, Amazon and ServiceNow.
Janus Henderson Global Technology and Innovation Fund Class T (JAGTX - Free Report) aims for long-term growth of capital. The fund invests the majority of its assets in securities of companies that the fund managers believe will significantly benefit from advances in technology. JAGTX has returned nearly 25% in the past five years.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
JAGTX has an annual expense ratio of 0.93%, which is below the category average of 1.29%. The fund has a minimum initial investment of $2,500. Some of the fund’s top clouds computing stock holdings are Microsoft, Adobe Systems and salesforce.com.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.
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