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.
Dreyfus Technology Growth A (DTGRX - Free Report) seeks capital growth. The fund invests in securities of technology companies that posses the ability to provide high earnings growth. A maximum of 25% of its assets may be utilized to purchase foreign securities. The technology mutual fund has a five year annualized return of 27.42%.
Barry Mills is the fund manager and has managed this fund since 2007.
Henderson Global Technology A invests heavily in companies related to the technology sector. The fund purchases both domestic and foreign securities and seeks capital growth over the long term. It may hold securities from issuers located in a single or in a limited number of nations. The technology mutual fund has a five year annualized return of 25.07%.
The fund has an expense ratio of 1.49% as compared to category average of 1.55%.
MFS Technology A (MTCAX - Free Report) seeks capital growth. It invests a large share of its assets in domestic and foreign equity securities of technology companies. Companies which stand to gain from technological advancement are selected for investment, regardless of their size. This technology mutual fund has a five year annualized return of 29.08%.
As of January 2014, this non-diversified mutual fund held 103 issues with 10.56% of its total assets invested in Google, Inc.
Wells Fargo Advantage Specialized Technology A (WFSTX - Free Report) invests the majority of its assets in the technology sector. A maximum of half of its assets are invested in foreign equity securities. Not more than 25% of its assets may be invested in a foreign country. This technology mutual fund has a five year annualized return of 27.95%.
The non-diversified fund has an expense ratio of 1.63% as compared to category average of 1.55%.
T. Rowe Price Global Technology (PRGTX - Free Report) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund invests in a minimum of 5 countries and 25% of assets are allocated for investment in foreign companies. This technology mutual fund has a five year annualized return of 33.28%.
As of December 2013, this fund held 76 issues with 10.54% of its assets invested in Apple Inc.
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.