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Mutual Fund Commentary

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.

Wells Fargo Advantage Specialized Technology A (WFSTX - MF report) invests the majority of its assets in the technology sector. A maximum of half of its assets are invested in foreign equity securities. Not more than 25% of its assets may be invested in a foreign country. This technology mutual fund is non-diversified and has a ten year annualized return of 9.64%.

The technology fund has an expense ratio of 1.63% compared to a category average of 1.53%.

T. Rowe Price Global Technology (PRGTX - MF report) 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 ten year annualized return of 11.56%.

As of June 2013, this technology mutual fund held 78 issues, with 13.78% of its total assets invested in Apple Inc.

RS Technology A (RSIFX - MF report) invests a large share of its assets in securities of issued by technology companies. The fund focusses on acquiring equity securities issued by domestic companies. However, it may also purchase foreign securities. The technology mutual fund has a ten year annualized return of 8.56%

The fund manager is Stephen Bishop and he has managed this technology mutual fund since 2001.

Fidelity Select Electronics (FSELX - MF report) 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 ten year annualized return of 4.34%

The technology fund has an expense ratio of 0.82% compared to a category average of 1.53%.

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 ten year annualized return of 7.46%.

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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