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3 Top-Ranked Technology Funds for Spectacular Returns

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Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than others owing to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies — such as wearables, VR headsets, drones, virtual reality devices and AI — are the key catalysts for the sector.

Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology now has a broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.

Below we share with you three top-ranked technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.

Janus Henderson Global Technology and Innovation Fund Class D (JNGTX - Free Report) aims for long-term growth of capital. The fund invests majority of its assets in securities of companies that the fund managers believe will benefit significantly from advances in technology. JNGTX has returned 30.5% in the past three years.

As of the end of June 2020, JNGTX held 69 issues with 7.92% of its assets invested in Microsoft Corp.

Fidelity Select Technology Portfolio (FSPTX - Free Report) fund aims for capital appreciation. The fund invests majority of its assets in common stocks of companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. FSPTX has three-year annualized returns of 29.2%.

Nidhi Gupta is the fund manager of FSPTX since 2018.

T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. The non-diversified fund invests majority of its assets in common stocks of companies the managers expect to generate a majority of their revenues from the development, advancement and use of technology. PRGTX has three-year annualized returns of 24.1%.

PRGTX has an expense ratio of 0.88% compared to the category average of 1.29%.

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

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