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5 Top-Rated Technology Mutual Funds to Buy Now

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More often than not the technology sector is likely to report above par earnings compared to 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.

Fidelity Advisor Electronics A (FELAX - Free Report) seeks capital growth over the long run. It invests a lion’s shares of its assets in companies involved in manufacturing, designing and distribution of electronic components. The fund invests in firms through out the world. Factors such as financial strength and economic conditions are considered to invest in a company. The non-diversified technology mutual fund has a three year annualized return of 22%.

This fund has an expense ratio of 1.39% as compared to category average of 1.49%.

Fidelity Select Software & Computer Portfolio (FSCSX - Free Report) invests a major portion of its assets in securities of companies whose primary operations are related to software or information-based services. It invests in domestic as well as in foreign companies using both fundamental analysis as well as considering market and economic factors. The non-diversified technology mutual fund has a three year annualized return of 24.8%.

Brian Lempel is the fund manager and has managed the fund since 2009.

Matthews Asia Science & Technology Investor (MATFX - Free Report) seeks long term capital growth. The fund invests the majority of its assets in companies located in Asia which generate more than half of their revenues from product and services sales in technology related industries and services. The technology mutual fund has a three year annualized return of 19.5%.

As of June 2014, this fund held 52 issues with 9.13% invested in Baidu Inc ADR.

USAA Science & Technology Adviser (USTCX - Free Report) invests a large portion of its assets in companies which are expected to gain from science and technology advancement. It may invest a maximum of half of its assets in foreign firms. The technology mutual fund has a three year annualized return of 24.6%.

This fund has an expense ratio of 1.56% as compared to category average of 1.49%.

Fidelity Select Wireless Portfolio (FWRLX - Free Report) invests heavily in companies involved in operations related to wireless communications services or products. It focuses in acquiring common stocks of companies all over the globe depending on factors such as industry position, financial strength and economic condition. This non-diversified technology mutual fund has a three year annualized return of 15.9%.

Kyle Weaver is the fund manager and has managed the fund since 2009.

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 in our Mutual Fund Center.

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