Mutual funds focusing on the technology domain not only invest in companies operating in the sector but also bet on firms who seek to leverage advances in technology. This category emerged as a force to reckon with only about twenty years ago, but their subsequent slide has led many investors to eschew this class of funds. Subsequently, fund prices have been based on stronger fundamentals, substantially reducing the risk involved. With the advantages of professional management, mutual funds are the best option for investing in this category.

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, then click here.

Vanguard Information Technology Index ( VITAX - MF report ) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index. The fund invests almost all its assets in equity securities which are included in the index. The technology mutual fund has a three year annualized return of 19.64%.

The fund manager is Michael Perre and he has managed this technology mutual fund since 2004.

HighMark NYSE ArcaTech 100 Index A (PPTIX) invests at least 90% of its assets in securities which make up the ArcaEx Tech 100 index. Not more than 10% of the fund’s assets may be utilized to enter into index futures and options contracts. The technology mutual fund returned 9.69% in the last one year period.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.08% compared to a category average of 1.62%.

Fidelity Select Software and Computer Services ( FSCSX - MF report ) seeks long term capital growth. At least 80% of its assets are invested in companies whose principal operations are related to software or information-based services. The fund may purchase foreign securities and invest a heavily in a single issuer. The technology mutual fund has a five year annualized return of 8.19%.

As of October 2011, this technology mutual fund held 129 issues, with 10.96% of its total assets invested in Microsoft Corporation.

MFS Technology A ( MTCAX - MF report ) invests a large share of its assets in companies whose businesses gain from advancements in the technology domain. Domestic and foreign stocks, including emerging market securities constitute its major investments. The technology mutual fund returned 10.13% in the last one year period.

The fund manager is Matthew Sabel and he has managed this technology mutual fund since 2011.

Dreyfus Technology Growth A (DTGRX) seeks capital appreciation. The fund invests the majority of its assets in companies who are producers in the technology sector or stand to benefit from advances in this domain. Not more than 25% of its assets are utilized to purchase foreign securities. The technology mutual fund has a ten year annualized return of 4.3%.

The technology mutual fund has an expense ratio of 1.36% compared to a category average of 1.62%.

To view the Zacks Rank and past performance of all technology mutual 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.