More often than not the technology sector is likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and fairly longer investment horizon should park their savings in these funds.
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.
Waddell & Reed Science & Technology A seeks capital appreciation. The fund invests a large share of its assets in securities of companies which are related to technology and science. Investments can be made regardless of the market cap of a company. The technology mutual fund has a five year annualized return of 25.21%.
Zachary H. Shafran is the fund manager and has managed the fund since 2001.
ProFunds Internet UltraSector (INPSX - Free Report) invests in securities and derivatives with an objective to generate return investment results which are 150% of the daily performance of the Dow Jones Internet Composite Index. This technology mutual fund is non-diversified and has a five year annualized return of 47.84%.
The fund has an expense ratio of 2.75% as compared to category average of 2.09%.
Fidelity Select Technology (FSPTX - Free Report) seeks capital growth. The fund invests a lion’s share of its assets in securities of companies which are operating in the technology domain. It may also invest in companies who are poised to gain from technological improvements. The non-diversified technology mutual fund has a five year annualized return of 27.52%.
As of December 2013, this fund held 351 issues with 10.03% of its total assets invested in Google, Inc.
DWS Technology A (KTCAX - Free Report) seeks capital appreciation. It 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 non-diversified technology mutual fund has a five year annualized return of 20.97%.
Frederic Fayolle is the fund manager and has managed the fund since 2009.
Black Oak Emerging Technology (BOGSX - Free Report) seeks capital appreciation over the long term. The fund invests the majority of its assets in common stocks of firms that are expected to emerge as market leaders in the technology sector. The non-diversified technology mutual fund has a five year annualized return of 22.38%.
The fund has an expense ratio of 1.35% as compared to category average of 1.55%.
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.