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.

Firsthand Technology Opportunities ( TEFQX - MF report ) seeks capital appreciation over the long term. The fund invests a large share of its assets in companies which utilize a high degree of cutting edge engineering or scientific knowledge in its operations. The technology mutual fund has a one year annualized return of 10.46%.

The fund manager is Kevin M. Landis and he has managed this technology mutual fund since 1999.

DWS Technology A ( KTCAX - MF report ) invests heavily in companies related to the technology sector. The fund primarily invests in domestic securities. A maximum of 35% of its assets may be utilized to purchase foreign securities. The technology mutual fund has a one year annualized return of 7.81%.

As of December 2012, this technology mutual fund held 96 issues, with 13.86% of its total assets invested in Apple Inc.

Vanguard Information Technology Index ( VITAX - MF report ) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index by utilizing an indexing -investment approach. The fund invests almost all its assets in equity securities which are included in the index. The technology mutual fund has a one year annualized return of 7.98%.

The technology mutual fund has an expense ratio of 0.14% compared to a category average of 1.60%.

HighMark NYSE ArcaTech 100 Index A ( PPTIX - MF report ) invests in nearly all of the securities which make up the NYSE Arca Tech 100 Index in nearly the same proportion. A minimum of 90% of its assets are invested in securities included in the index. The technology mutual fund has a one year annualized return of 16.07%.

The fund manager is Donald J. Nesbitt and he has managed this technology mutual fund since 2009.

Wells Fargo Advantage Specialized Technology A ( WFSTX - MF report ) seeks capital growth over the long term. The fund 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 has a one year annualized return of 5.41%.

The technology mutual fund has an expense ratio of 1.70% compared to a category average of 1.60%.

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.