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Mutual Fund Commentary

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.

Henderson Global Technology A (HFGAX - MF report) invests heavily in companies related to the technology sector. The fund purchases both domestic and foreign securities. It holds securities from issuers located in at least three countries, including the US. The technology mutual fund has a one year annualized return of 21.35%.

The fund manager is Ian Warmerdam and he has managed this technology mutual fund since 2001.

Dreyfus Technology Growth A (DTGRX - MF report) seeks capital growth. The fund invests in securities of technology companies which have high earnings growth prospects. A maximum of 25% of its assets may be utilized to purchase foreign securities. The technology mutual fund has a one year annualized return of 25.29%.

As of September 2012, this technology mutual fund held 32 issues, with 6.70% of its total assets invested in Apple Inc.

Wells Fargo Advantage Specialized Technology A (WFSTX - MF report) invests the majority of its assets in technology companies. It may utilize at most half of its assets to purchase foreign common stocks and ADRs. A maximum of 25% of its assets can be invested in any single country, Japan being the only exception. The technology mutual fund is non-diversified and has a one year annualized return of 20.37%.

The technology mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.70% compared to a category average of 1.61%.

Goldman Sachs Technology Tollkeeper A (GITAX - MF report) seeks capital growth over the long term. The fund invests heavily in equity securities of in equity securities of Tollkeeper companies. Generally, the fund purchases domestic securities. The technology mutual fund has a one year annualized return of 31.43%.

The fund manager is Jeffrey Rabinowitz and he has managed this technology mutual fund since 2011.

VALIC Company I Science & Technology (VCSTX - MF report) invests the majority of its assets in science and technology companies. A maximum of 50% of its assets may be utilized to purchase foreign securities. Not more than 15% of its assets can be invested in any single emerging market country. The technology mutual fund has a one year annualized return of 19.97%.

The technology mutual fund has an expense ratio of 1.01% compared to a category average of 1.61%.

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.

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