Back to top

Image: Bigstock

3 Top-Ranked Technology Mutual Funds for Superlative Returns

Read MoreHide Full Article

Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics, and data science are the key catalysts to the sector’s growth.

In addition, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. Technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.

Below, we share with you three technology mutual funds, viz., Fidelity Select Semiconductors Portfolio (FSELX - Free Report) , Fidelity Select Technology (FSPTX - Free Report) and Fidelity Select Tech Hardware (FDCPX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of technology funds.

Fidelity Select Semiconductors Portfolio fund invests most of its net assets in common stocks of domestic and foreign companies that are mainly engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX advisors choose to invest in stocks based on fundamental analysis factors like financial condition, industry position and market and economic prospects.

Fidelity Select Semiconductors Portfolio has three-year annualized returns of 27.9%. As of the end of November 2023, FSELX held 35 issues, with 24.52% of its assets invested in NVIDIA Corp.

Fidelity Select Technology fund invests most of its net assets in securities of domestic and foreign companies that are principally engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements. FSPTX advisors use fundamental analysis factors such as each issuer's financial condition, industry position, as well as market and economic conditions to make an investment decision.

Fidelity Select Technology fund has three-year annualized returns of 10.2%. FSPTX has an expense ratio of 0.68%.

Fidelity Select Tech Hardware fund invests most of its net assets in securities of domestic and foreign companies that are principally engaged in the development, manufacture, or distribution of tech hardware. FDCPX advisors use fundamental analysis factors such as each issuer's financial condition, industry position, as well as market and economic condition to make an investment decision.

Fidelity Select Tech Hardware fund has three-year annualized returns of 5.9%. Elliot Mattingly has been one of the fund managers of FDCPX since January 2022.

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

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. Get it free >>

Published in