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Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than the other sectors due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and AI are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors opt for a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. Social media and Internet companies are now part of the technology landscape.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital growth. The fund mostly invests in equity securities of companies that benefit from technological innovation, superior management and new industry conditions. The fund mostly invests in common stocks of companies and may choose to invest in U.S. and non-U.S. issuers alike. FKDNX has returned 30% on a year-to-date basis.
As of May 2019, FKDNX held 139 issues with 6.30% of its assets invested in Amazon.com Inc.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) fund invests the majority of its assets in companies that are engaged in activities related to communication services. The non-diversified fund invests in U.S. and non-U.S. companies alike. FBMPX has returned 20.8% on a year-to-date basis.
FBMPX has an expense ratio of 0.82% as compared to the category average of 1.23%.
Columbia Seligman Communications and Information Fund Class A (SLMCX - Free Report) aims for capital appreciation and invests the majority of its assets in securities of companies in communications, information and related fields. The non-diversified fund invests in companies engaged in operations in the information technology and telecommunications sectors along with those in the media industry. The fund may also invest up to a quarter of its assets in foreign investments. SLMCX has returned 25.9% on a year-to-date basis.
Shekhar Pramanick is the fund manager of SLMCX since 2013.
T. Rowe Price Science and Technology Fund (PRSCX - Free Report) seeks capital growth over a long period of time. The non-diversified fund invests most of its assets in securities of companies that stand to gain from development and use of science and/or technology. Although most of the fund’s assets are invested in U.S.-based companies, it may also invest in foreign stocks and emerging market issuers. PRSCX has returned 25.9% on a year-to-date basis.
PRSCX has an expense ratio of 0.79% as compared to the category average of 1.29%.
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4 Top Technology Mutual Funds for Solid Returns
Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than the other sectors due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and AI are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors opt for a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. Social media and Internet companies are now part of the technology landscape.
Below we share with you four top-ranked technology mutual funds. Each has earned 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 funds.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital growth. The fund mostly invests in equity securities of companies that benefit from technological innovation, superior management and new industry conditions. The fund mostly invests in common stocks of companies and may choose to invest in U.S. and non-U.S. issuers alike. FKDNX has returned 30% on a year-to-date basis.
As of May 2019, FKDNX held 139 issues with 6.30% of its assets invested in Amazon.com Inc.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) fund invests the majority of its assets in companies that are engaged in activities related to communication services. The non-diversified fund invests in U.S. and non-U.S. companies alike. FBMPX has returned 20.8% on a year-to-date basis.
FBMPX has an expense ratio of 0.82% as compared to the category average of 1.23%.
Columbia Seligman Communications and Information Fund Class A (SLMCX - Free Report) aims for capital appreciation and invests the majority of its assets in securities of companies in communications, information and related fields. The non-diversified fund invests in companies engaged in operations in the information technology and telecommunications sectors along with those in the media industry. The fund may also invest up to a quarter of its assets in foreign investments. SLMCX has returned 25.9% on a year-to-date basis.
Shekhar Pramanick is the fund manager of SLMCX since 2013.
T. Rowe Price Science and Technology Fund (PRSCX - Free Report) seeks capital growth over a long period of time. The non-diversified fund invests most of its assets in securities of companies that stand to gain from development and use of science and/or technology. Although most of the fund’s assets are invested in U.S.-based companies, it may also invest in foreign stocks and emerging market issuers. PRSCX has returned 25.9% on a year-to-date basis.
PRSCX has an expense ratio of 0.79% as compared to the category average of 1.29%.
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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