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Mutual Fund Commentary

Technology has increasingly become an indispensable part of our daily lives and the future prospects of this sector only seem brighter. However, the boom of tech funds in the late nineties and their subsequent downfall during the decline that followed has invoked a certain degree of skepticism even among those bullish on this category. But for investors seeking aggressive growth over the long term, investing in funds that focus on technology and innovation could be a prudent option in times to come.

Below we will share with you the 5 best performing Zacks #1 ranked technology mutual funds year to date. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.

Mutual Fund Total Return YTD
Wells Fargo Advantage Specialized Technology A 0.76%
VALIC Company I Science & Technology 0.74%
Dreyfus Technology Growth A 0.29%
Invesco Technology Investor 00.0%
Fidelity Select Software & Computer -0.11%

Wells Fargo Advantage Specialized Technology A (WFSTX) invests the majority of its assets in the technology sector. A maximum of half of its assets are invested in foreign equity securities that includes up to 15% of assets being invested in emerging markets. Not more than 25% of its assets may be invested in a foreign country. This technology mutual fund is non-diversified and has a five year annualized return of 24.52%.

Walter C. Price, Jr. is the fund manager and has managed this fund since 2000.

VALIC Company I Science & Technology (VCSTX - MF report) seeks capital growth over the long term. It invests the majority of its assets in science and technology companies. A maximum of 50% of its assets may be utilized to purchase foreign securities. Not more than 15% of its assets can be invested in any single emerging market country. This technology mutual fund is non-diversified and has a five year annualized return of 25.26%.

The technology mutual fund has an expense ratio of 1.02% as compared to a category average of 1.55%.

Dreyfus Technology Growth A (DTGRX - MF report) 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. This technology mutual fund is non-diversified and has a five year annualized return of 24.23%.

As of December 2013, this fund held 30 issues with 5.02% of its total assets invested in Facebook Inc Class A.

Invesco Technology Investor (FTCHX - MF report) seeks capital appreciation over the long term. It invests mostly in companies involved in the technology-related industries and may also invest in derivatives with similar economic traits. The technology mutual fund is non-diversified and has a five year annualized return of 21.06%.

Warren T. Tennant is the fund manager and has managed this fund since 2008.

Fidelity Select Software & Computer (FSCSX - MF report) seeks capital growth. The fund invests in securities of companies whose primary operations are related to software or information-based services. It invests in domestic as well as in foreign companies using both fundamental analysis as well as considering market and economic factors. The technology mutual fund is non-diversified and has a five year annualized return of 28.53%.

The technology fund has an expense ratio of 0.80% compared to a category average of 1.55%.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.

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