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3 Top-Ranked Technology Mutual Funds for Savvy Investors

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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 the other sectors due to greater demand for technology and innovation. The sector is likely to experience more volatility than the others in the short term. However, the extent of volatility is expected to ease over a longer time horizon.

Meanwhile, most of the mutual funds investing in securities from these sectors opt for a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. Social media and “Internet” companies are now part of the technology landscape.

Below we share with you three buy-rated technology mutual funds. 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 technology funds, their Zacks Rank and past performance.

Putnam Global Technology C (PGTDX - Free Report) invests in common stocks of both mid and large sized companies across the world. PGTDX invests a major portion of its assets in securities of companies in the technology industries. Putnam Global Technology C is non-diversified and has a three-year annualized return of 15%.

As of March 2016, PGTDX held 60 issues with 12.76% of its assets invested in Alphabet Inc Class C.

Fidelity Select Technology Portfolio (FSPTX - Free Report) seeks capital growth over the long run. FSPTX invests a large chunk of its assets in common stocks of companies primarily involved in production, development and sale of products used for technological advancement. FSPTX invests in both U.S. and non-U.S. companies. Factors including financial strength and economic condition are considered before investing in a company. Fidelity Select Technology Portfolio is non-diversified and has a three-year annualized return of 12.5%.

Charlie Chai is the fund manager and has managed FSPTX since 2007.

MFS Technology A (MTCAX - Free Report) invests a large chunk of its assets in securities of companies involved in operations related to products and services that are believed to benefit from advancement and improvement of technology. MTCAX invests in securities issued throughout the globe including those from emerging markets. MFS Technology A is a non-diversified fund and has a three-year annualized return of 14.8%.

As of May 2016, MTCAX held 63 issues with 11.40% of its assets invested in Alphabet Inc Class A.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.


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Putnam Global Technology C (PGTDX) - free report >>

Fidelity Select Technology (FSPTX) - free report >>

MFS Technology A (MTCAX) - free report >>

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