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 a portion of their savings in these funds.
Below we will share with you 4 potential technology mutual funds. Each has earned a Zacks #2 Rank (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 Fund (PRGTX - Free Report) invests a lion’s share of its assets throughout the world in the common stocks of companies that derive a major portion of their revenues from the development, advancement, and use of technology. PRGTX invests in a minimum of 5 countries and a minimum 25% of its assets are invested in foreign companies. PRGTX invests in firms with established track records. The T Rowe Price Global Technology Fund returned 32.2% in the last one year.
PRGTX has an expense ratio of 0.91% as compared to category average of 1.54%.
Red Oak Technology Select (ROGSX - Free Report) seeks capital appreciation over the long run. ROGSX invests a majority of its assets in companies related to the technology industry. ROGSX mainly focuses on acquiring common stocks of domestic companies. However, ROGSX may also invest in foreign firms and American Depositary Receipts. The Red Oak Technology Select returned 12.9% in the last one year.
Mark W. Oelschlager is the fund manager and has managed ROGSX since 2006.
Fidelity Select Multimedia Portfolio (FBMPX - Free Report) invests a large chunk of its assets in companies involved in the development, production, sale, and distribution of goods or services related to the broadcast and media industries. FBMPX primarily invests in common stocks of companies located throughout the globe. Factors including financial strength and economic conditions are considered to invest in a company. The Fidelity Select Multimedia Portfolio is non-diversified and returned 16.5% in the last one year.
As of March 2015, this fund held 34 issues with 23.21% invested in Walt Disney Co.
Matthews Asia Science & Technology Investor (MATFX - Free Report) seeks capital growth over the long-term. MATFX invests the major share 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 Matthews Asia Science & Technology Investor returned 20.8% in the last one year.
MATFX has an expense ratio of 1.16% as compared to category average of 1.54%.
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. Pick the best mutual funds with the Zacks Rank.