Technology has increasingly become an indispensible 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 5 top rated technology funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all technology funds, then click here.
Fidelity Select Technology (FSPTX - MF report) invests the majority of its assets in firms whose principal operations include offering or developing products and services that benefit from technological advances. It is non-diversified and may purchase foreign securities. The fund returned 84.49% in the last one year period.
The fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.81%.
RS Technology A (RSIFX - MF report) seeks capital growth over the long term. It invests at least 80% of its assets in equity securities of technology companies. It concentrates on purchasing securities of small and mid-cap companies. The fund invests heavily in domestic companies but may also purchase foreign securities. The fund has a three year annualized return of 4.14%.
The fund manager is Allison Thacker and she has managed this technology fund since 2003.
ProFunds Technology UltraSector (TEPIX - MF report) seeks investment results which are 150% of the daily performance of the Dow Jones U.S. Technology Sector Index. It invests the majority of its assets in equity securities included in the index or those with similar characteristics. It may also purchase debt securities or money market instruments. The fund returned 94.59% in the last one year period.
The technology fund has an expense ratio of 1.64% compared to a category average of 1.81%.
Franklin DynaTech A (FKDNX) invests a large share of its assets in companies which have the potential to benefit from technological advancements and innovation. Not more than 25% of its assets are utilized top purchase foreign securities which are not publicly traded in the domestic market. The fund returned 53.79% in the last year and has a five year annualized return of 5.64%.
As of March 2010, this technology fund held 78 issues, with 6.25% of its total assets invested in Apple Inc.
Wasatch Global Science & Technology (WAGTX - MF report) invests the majority of its assets in domestic and foreign companies in the science and technology domain. It invests in at least three developed countries including the U.S. The fund may also purchase a substantial amount of emerging market securities. The fund has a five year annualized return of 5.85%.
The fund manager is Samuel S. Stewart Jr. and he has managed this technology fund since 2008.
To view the Zacks Rank and past performance of all technology funds, then click here.
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 at http://www.zacks.com/funds/mutualfund/