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3 Top-Ranked Technology Mutual Funds to Invest In

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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. 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 technology mutual funds, viz., Fidelity Select Semiconductors Portfolio (FSELX - Free Report) , Fidelity Select Computer (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.

Fidelity Select Semiconductors Portfolio invests most of its net assets in common stocks of domestic and foreign companies that are mainly engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX advisors choose to invest in stocks based on fundamental analysis factors like financial condition, industry position and market and economic prospects as well.

Fidelity Select Semiconductors Portfolio has three-year annualized returns of 14.10%. As of the end of Aug 2022, FSELX held 45 issues, with 20.48% of its assets invested in Nvidia Corp.

Fidelity Select Computer invests most of its net assets in securities of domestic and foreign companies that are principally engaged in the development, manufacture, or distribution of tech hardware. FDCPX advisors use fundamental analysis factors such as each issuer's financial condition, industry position, as well as market and economic conditions to make an investment decision.

Fidelity Select Computer has three-year annualized returns of 8.8%. FDCPX has an expense ratio of 0.72% compared with the category average of 1.05%.

DWS Science and Technology Fund invests most of its assets along with borrowings, if any, in common stocks of domestic and foreign (including emerging market) companies in the technology sector, irrespective of their market capitalization. KTCAX advisors also invest ininitial public offerings.

DWS Science and Technology Fund has three-year annualized returns of 4.4%. Daniel J. Fletcher has been the fund manager 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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