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Grab These 3 Technology Mutual Funds for Solid 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 — are the key catalysts for the sector.

Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach, which 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, viz., Fidelity Select Computers Portfolio (FDCPX - Free Report) , Janus Henderson Global Technology and Innovation Fund Class D (JNGTX - Free Report) , and Fidelity Select Semiconductors Portfolio (FSELX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Fidelity Select Computers Portfolio aims for capital appreciation. FDCPX invests the majority of its 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.

Fidelity Select Computers Portfolio has three-year annualized returns of 36.2%. FDCPX has an expense ratio of 0.74% compared with the category average of 1.05%.

Janus Henderson Global Technology and Innovation Fund Class D aims for long-term growth of capital. JNGTX invests the majority of its assets in securities of companies that the fund managers believe will benefit significantly from advances in technology.

Janus Henderson Global Technology and Innovation Fund Class D has three-year annualized returns of 37.2%. Denny Fish has been a fund manager of JNGTX since 2016.

Fidelity Select Semiconductors Portfolio fund aims for capital appreciation. As a non-diversified fund, FSELX invests the majority of its assets in securities of companies principally engaged in the design, manufacturing or sale of semiconductors and semiconductor equipment.

Fidelity Select Semiconductors Portfolio has three-year annualized returns of 55.6%. As of the end of December 2021, FSELX held 51 issues, with 21.30% of its assets invested in NVIDIA Corp.

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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