Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.

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, investors can click here to see the complete list of funds.

Invesco Technology Investor ( FTCHX - MF report ) invests a large share of its assets in companies which leverage technology in product development or operations. The fund purchases both domestic and foreign securities. The technology mutual fund is non-diversified and has a five year annualized return of 2.12%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.90% compared to a category average of 1.59%.

Red Oak Technology Select ( ROGSX - MF report ) seeks capital appreciation over the long term. The fund invests the majority of its assets in common stocks of firms that are heavily dependent on technology for their operations or product development activities. It may also purchase foreign common stocks and ADRs. The technology mutual fund has a five year annualized return of 3.96%.

The fund manager is Mark W. Oelschlager and he has managed this technology mutual fund since 2006.

Columbia Seligman Global Technology A ( SHGTX - MF report ) invests a large share of its assets in domestic and foreign equity securities of technology companies and those with operations in related areas. The fund invests in firms without regard to their market capitalization. The technology mutual fund has a five year annualized return of 2.88%.

The technology mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.49% compared to a category average of 1.59%.

Northern Technology ( NTCHX - MF report ) seeks capital growth over the long term. The fund invests the majority of its assets in companies whose principal operations are conducted in the technology sector. It may invest heavily in IPOs. The technology mutual fund has a five year annualized return of 2.95%.

As of June 2012, this technology mutual fund held 68 issues, with 5.08% of its total assets invested in Apple, Inc.

USAA Science & Technology ( USSCX - MF report ) invests a large share of its assets in companies which expect to gain from scientific and technological advances. A maximum of half of its assets may be utilized to purchase foreign securities from either domestic or foreign markets. The technology mutual fund has a five year annualized return of 2.53%.

The fund manager is Nicolas B. Boullet and he has managed this technology mutual fund since 2008.

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

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.