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Play These 3 Technology Funds for Spectacular Returns

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Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics and data science are the key catalysts to the sector’s growth.

In addition, the majority of funds investing in securities from the technology sector take a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.

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.

Fidelity Select Semiconductors Portfolio (FSELX - Free Report) fund aims for capital appreciation. The non-diversified fund invests the majority of its assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX has three-year annualized returns of 25%.

As of the end of August 2020, FSELX held 40 issues with 22.9% of its assets invested in NVIDIA Corp.

Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It invests in common stocks of both domestic and foreign companies. FSCSX has three-year annualized returns of 29.3%.

Ali Khan is the fund manager of FSCSX since 2014.

Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund primarily invests in common stocks of companies which the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management and benefit from new industry conditions in a dynamically changing global economy. FKDNX has three-year annualized returns of 27.9%.

FKDNXhas an expense ratio of 0.86% compared to the category average of 1.05%.

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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