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4 Best Tech Mutual Funds Rallying on Work-From-Home Practices

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Thematic investment has taken center stage in the past years given the massive changes that the world is undergoing. It helps investors diversify investments and incorporate the latest trends such as the coronavirus-triggered structural shifts in the present scenario. Talking about the latest trends, the coronavirus pandemic has forced businesses to close down offices and work from home.

Owing to advancement in technology, several companies have been operational to the maximum available capacity even as the virus wrecks havoc, globally. The work-from-home trend has become an attractive theme to invest in. Technology-based companies that facilitate in remote working have not only become highly resilient investment options but also help investors play safe during the slump.

These work-from-home stocks generally include technological infrastructure and services and deal in cloud technology, cybersecurity, remote communications, online project and document management among others. In fact, their commendable performance during the coronavirus-driven economic slump in the first quarter of 2020 resulted in the creation of the Direxion Work From Home ETF (WFH). The ETF has added 9.7% since it began trading on Jun 25.

New COVID-19 cases are rising consistently and with no effective vaccine brewing anytime soon, the pandemic continues to aggravate. In fact, as the economy makes progress with reopening plans chances of a second wave looms. The current conditions demand highly resilient investment options and strategies and investors can focus on work-from-home themed investment.

Working from home is part of the new normal and several companies have now started looking into the benefits of remote working. This rapid switch to the remote work model has underlined several factors like increased flexibility, better performance and productivity levels.

While companies like Google Amazon and Apple are extending their remote-work timeline until the end of 2020, some like Uber have asked employees to work from home up till June 2021. Organizations are now focusing on building robust technological infrastructure and working on digital collaboration, data security and connectivity as the work-from-home trend is here to stay.

Our Top 4 Funds Picks

Given the current scenario, we have shortlisted four tech mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

DWS Science and Technology Fund - Class A (KTCAX - Free Report) aims for growth of capital. The fund invests the majority of its net assets and additional borrowings amount for investment purposes, in common stocks of science and technology companies. This non-diversified fundconcentrates on one or more industries in the technology sector.

This Sector-Tech product has a history of positive total returns for over 10 years.  Specifically, the fund’s returns are 23.7% over the past 3 years. To see how this fund performed compared to its category, and other #1 and #2 Ranked Mutual Funds, please click here.

KTCAX has an annual expense ratio of 0.93%, which is below the category average of 1.29% and requires a minimal initial investment of $1,000.

Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions.

This Sector-Tech product has a history of positive total returns for over 10 years.  Specifically, the fund’s returns are 24.6% over the 3-year period. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.

FKDNX has an annual expense ratio of 0.86%, which is below the category average of 1.05% and requires a minimal initial investment of $1,000.

Janus Henderson Global Technology and Innovation Fund Class A (JATAX - Free Report)  aims for long-term growth of capital. The fund invests the majority of its net assets in securities of companies benefiting from advances or improvements in technology.

This Sector-Tech product has a history of positive total returns for over 10 years.  Specifically, the fund’s returns are 26.1% over the 3-year period. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.

JATAX has an annual expense ratio of 1.01%, which is below the category average of 1.29% and requires a minimal initial investment of $2,500.

T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. The non-diversified fund invests at least four-fifth of its net assets in the common stocks of companies. The fund managers expect these companies to generate the majority of their revenues from the development, advancement, and use of technology.

This Sector-Tech product has a history of positive total returns for over 10 years.  Specifically, the fund’s returns are 20.4% over the past 3 years. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.

PRGTX has an annual expense ratio of 0.88%, which is below the category average of 1.29% and requires a minimal initial investment of $2,500.

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