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Invest in These 3 Technology Mutual Funds for Better Returns
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Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than others owing to innovation and greater demand. Improving industry fundamentals and emerging technologies — such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence (AI) — are the key catalysts for the sector.
Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology now has broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.
Fidelity Select Computers Portfolio (FDCPX - Free Report) aims for capital appreciation. This non-diversified fund invests majority of assets in securities of companies primarily engaged in research, design, development, manufacture or distribution of products and services related to currently available or experimental hardware technology in the computer industry. FDCPX has three-year annualized returns of nearly 28%.
As of the end of March 2021, FDCPX held 32 issues with 16.4% of its assets invested in Sony Group Corp.
T. Rowe Price Science and Technology Fund (PRSCX - Free Report) aims for long-term capital appreciation. This non-diversified fund invests in common stocks of companies expected to benefit from the development and use of science and/or technology. It may invest in foreign stocks, including issuers in emerging markets. PRSCX has three-year annualized returns of 28.3%.
Kennard W. Allen is the fund manager of PRSCX since 2009.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions. FKDNX has three-year annualized returns of 29.1%.
FKDNX has an expense ratio of 0.85% compared to the category average of 1.00%.
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Invest in These 3 Technology Mutual Funds for Better Returns
Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than others owing to innovation and greater demand. Improving industry fundamentals and emerging technologies — such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence (AI) — are the key catalysts for the sector.
Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology now has broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.
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 Computers Portfolio (FDCPX - Free Report) aims for capital appreciation. This non-diversified fund invests majority of assets in securities of companies primarily engaged in research, design, development, manufacture or distribution of products and services related to currently available or experimental hardware technology in the computer industry. FDCPX has three-year annualized returns of nearly 28%.
As of the end of March 2021, FDCPX held 32 issues with 16.4% of its assets invested in Sony Group Corp.
T. Rowe Price Science and Technology Fund (PRSCX - Free Report) aims for long-term capital appreciation. This non-diversified fund invests in common stocks of companies expected to benefit from the development and use of science and/or technology. It may invest in foreign stocks, including issuers in emerging markets. PRSCX has three-year annualized returns of 28.3%.
Kennard W. Allen is the fund manager of PRSCX since 2009.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions. FKDNX has three-year annualized returns of 29.1%.
FKDNX has an expense ratio of 0.85% compared to the category average of 1.00%.
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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