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3 Top-Ranked Technology Mutual Funds for Alluring Gains

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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 Advisor Semiconductors (FELIX - Free Report) , DWS Science and Technology (KTCAX - Free Report) and Fidelity Select Technology (FSPTX - 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 Advisor Semiconductors fund invests most of its net assets in securities of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FELIX 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 Advisor Semiconductors fund has three-year annualized returns of 27.9%. As of the end of January 2024, FELIX held 38 issues, with 24.8% of its assets invested in NVIDIA Corporation.

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 12.3%. KTCAX has an expense ratio of 0.90%.

Fidelity Select Technology fund invests most of its net assets in securities of domestic and foreign companies that are principally engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements. FSPTX 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 Technology fund has three-year annualized returns of 10.9%. Adam Benjamin has been the fund manager of FSPTX since January 2022.

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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