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Grab These 3 Technology Mutual Funds for Spectacular 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, 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 Advisor Semiconductors Fund Class I (FELIX - Free Report) , Fidelity Select Technology Portfolio (FSPTX - Free Report) , and T. Rowe Price Communications & Technology Fund Investor Class (PRMTX - Free Report) . Each has 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 technology funds.

Fidelity Advisor Semiconductors Fund Class I fund seeks capital appreciation by investing primarily in common stocks. FELIX invests most of its assets in securities of companies engaged in the design and manufacture of semiconductors and semiconductor equipment from domestic and foreign issuers.

Fidelity Advisor Semiconductors Fund Class I fund has three-year annualized returns of 38.3%. As of the end of October 2021, FELIX held 46 issues with 25% of its assets invested in NVIDIA Corp.

Fidelity Select Technology fund aims for capital appreciation by investing most of its net assets in common stocks of domestic and foreign companies that will benefit significantly from technology advances and improvement. FSPTX advisors use fundamental analysis i.e financial condition, industry position, and market and economic conditions to select investments.

Fidelity Select Technology Portfolio fund has three-year annualized returns of 30.9%. FSPTX has an expense ratio of 0.69% compared with the category average of 1.05%.

T. Rowe Price Communications & Technology Fund Investor Class seeks long-term capital growth by investing a sizeable portion of its net assets and borrowings if any, in securities of US or Non-US technology and communication companies. PRMTX uses both growth and value approaches for investment.

T. Rowe Price Communications & Technology Fund Investor Class fund has three-year annualized returns of 18.5%. James Stillwagon is the fund manager of PRMTX since November 2019.

To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.

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