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3 Technology Mutual Funds for Prolific Returns

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Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics, and data science are the key catalysts to the sector’s growth.
In addition, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.

Below we share with you three top-ranked Technology mutual funds, viz., Columbia Seligman Technology and Information Fund Class A (SLMCX - Free Report) , Fidelity Select Computers Portfolio (FDCPX - Free Report) , and DWS Science and Technology Fund (KTCAX - Free Report) . Each has 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 technology funds.

Columbia Seligman Technology and Information Fund Class A fund seeks capital gains by investing most of its net assets including borrowings if any, in securities of companies operating in information technology and communications services. SLMCX advisors can invest a small portion of its net assets in foreign investments as well.

Columbia Seligman Technology and Information Fund Class A fund have three-year annualized returns of 23%. As of the end of February 2022, SLMCX held 73 issues with 6.06% of its assets invested in Lam Research Corp.

Fidelity Select Computers Portfolio fund seeks capital appreciation by investing the majority of its net assets in common stocks of domestic and foreign companies primarily engaged in the development, manufacture, or distribution of tech hardware. FDCPX management uses fundamental factors like financial condition, industry position as well as market and economic conditions to make investment decisions.

Fidelity Select Computers Portfolio fund has three-year annualized returns of 18.7%. FDCPX has an expense ratio of 0.74% compared with the category average of 1.05%.

DWS Science and Technology Fund invests a sizeable portion of its net assets along with borrowings if any, in common stocks and initial public offerings of science and technology companies primarily based in the United States, irrespective of its market cap. KTCAX management can also choose to invest a small portion of its net assets in foreign technology sector companies including one from emerging markets.

DWS Science and Technology Fund has three-year annualized returns of 15%. Sebastian P. Werner has been one of the fund managers of KTCAX since December 2017.

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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