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Zacks #1 Ranked Technology Mutual Funds

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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.

T. Rowe Price Global Technology (PRGTX - Free Report) seeks capital appreciation over long run. It invests a lion’s share of its assets in companies which expect to derive a large portion of their revenues from technological advancement. It invests 25% of its assets in foreign companies depending on their growth potentials and stock valuation. It invests in a minimum of 5 countries. The technology mutual fund has a three year annualized return of 13.25%.

This fund has an expense ratio of 0.95% as compared to category average of 1.55%.

VALIC Company I Science & Technology (VCSTX - Free Report) invests majority of its assets in science and technology companies. It invests a maximum of 50% of its assets in non U.S. companies. A maximum of 20% of its assets are invested in emerging markets. The technology mutual fund has a three year annualized return of 10.06%.

Kennard W. Allen is the fund manager and has managed the fund since 2009.

USAA Science & Technology (USSCX - Free Report) seeks long term capital growth. It invests a large portion of its assets in companies which are expected to gain from science and technology advancement. It invests a maximum of half of its assets in foreign companies. The technology mutual fund has a three year annualized return of 14.53%.

As of January 2014, this fund held 146 issues with 7.14% invested in Google Inc Class A.

MFS Technology A (MTCAX - Free Report) invests a major portion of its assets in both domestic and foreign technology companies. Firms which stand to gain from technological advancement are selected for investment, regardless of their size. The technology mutual fund has a three year annualized return of 11.96%.

This non-diversified fund has an expense ratio of 1.36% as compared to category average of 1.55%.

Red Oak Technology Select (ROGSX - Free Report) seeks capital appreciation over long run. It invests majority of its assets in companies related to the technology industry. It mainly focuses on domestic companies. However, it may also invest in foreign firms and American Depositary Receipts. The technology mutual fund has a three year annualized return of 14.46%.

Mark W. Oelschlager is the fund manager and has managed the fund since 2006.

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.
 

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.

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