Back to top

Image: Bigstock

3 Technology Mutual Funds for Spectacular Returns

Read MoreHide Full Article

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. 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, namely Columbia Seligman Technology and Information Fund Class A (SLMCX - Free Report) , Fidelity Select Technology Portfolio (FSPTX - Free Report) and T. Rowe Price Communications & Technology Fund Investor Class (PRMTX - 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.

Columbia Seligman Technology and Information Fund Class A seeks capital gains by investing the majority of its net assets, including borrowings in securities of companies operating in information technology and communications services. SLMCX, a non-diversified fund, also invests a small portion of its net assets in foreign investments.

Columbia Seligman Technology and Information Fund Class A has three-year annualized returns of 29.3%. As of February 2022, SLMCX held 72 issues, with 6.06% of its assets invested in Lam Research Corp.

Fidelity Select Technology Portfolio aims for capital appreciation by investing the majority of its net assets in common stocks of domestic and foreign companies that benefit significantly from technology advances and improvement. FSPTX uses fundamental analysis like financial condition, industry position, and market conditions to select investments.

Fidelity Select Technology Portfolio has three-year annualized returns of 23.2%. FSPTX has an expense ratio of 0.67% compared with the category average of 1.05%.

T. Rowe Price Communications & Technology Fund Investor Class seeks long-term capital growth by investing the majority of its net assets and 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 has three-year annualized returns of 10.3%. James Stillwagon has been the fund manager of PRMTX since 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 mutual funds.

Want key mutual fund info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>

Published in