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Which Tech Mutual Fund Should You Buy: FSCSX or JAGTX?
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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 other sectors due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as AI, machine learning, robotics and data science are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors take 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.
The U.S. technology sector has performed remarkably well so far this year, despite fears related to a slowdown in the global economy as well as trade tensions. Tech turned out to be the best performing sector in the first half of 2019, with the Technology Select Sector SPDR Fund (XLK) gaining 25.9% (as of Jun 27, 2019).
Under such circumstances, investing in technology mutual funds seems prudent. However, choosing the right mutual funds for your portfolio can become cumbersome. To that end, let us find out which of the two funds discussed below is better.
The fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 26% over the 3-year and 18.6% of the 5-year period. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
The Fidelity Select Software & IT Services Portfolio fund, as of the last filing, allocates their fund in top two major groups; Large Growth and Foreign Bond. Further, as of the last filing, Microsoft Corp, Visa Inc and Adobe Systems Inc were the top holdings for FSCSX.
This Zacks Mutual Fund Rank #1 (Strong Buy) was incepted in July 1985 and is managed by Fidelity. FSCSX carries an expense ratio of 0.72% and requires a minimal initial investment of $0.
The fund invests a huge part of its assets in equity securities of those companies that are expected to gain from improvements or advancements in technology. JAGTX seeks capital appreciation for the long run and invests in both domestic and foreign companies with stable growth potential. It generally invests in companies from different nations including the United States.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 3 and 5-year benchmarks are 26% and 18.6%, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
The Janus Global Technology T fund, as of the last filing, allocates their fund in the top two major groups; Foreign Stock and Emerging Market. Further, as of the last filing, Microsoft Corp, Alphabet Inc. and Alibaba Group Holding Ltd. were the top holdings for JAGTX.
This Zacks Rank #1 (Strong Buy) was incepted in December 1998 and is managed by Janus Fund. JAGTX carries an expense ratio of 0.92% and requires a minimal initial investment of $2,500.
To Conclude
While both JAGTX and FSCSX carry a Zacks Mutual Fund Rank #1, upon having a closer look, we find that the latter is a clear winner. FSCSX is not only dirt cheap (it has no minimum initial investment), its administrative and other operating expenses are lower compared to JAGTX. So, one should clearly bet on FSCSX for higher returns on low investments.
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Which Tech Mutual Fund Should You Buy: FSCSX or JAGTX?
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 other sectors due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as AI, machine learning, robotics and data science are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors take 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.
The U.S. technology sector has performed remarkably well so far this year, despite fears related to a slowdown in the global economy as well as trade tensions. Tech turned out to be the best performing sector in the first half of 2019, with the Technology Select Sector SPDR Fund (XLK) gaining 25.9% (as of Jun 27, 2019).
Under such circumstances, investing in technology mutual funds seems prudent. However, choosing the right mutual funds for your portfolio can become cumbersome. To that end, let us find out which of the two funds discussed below is better.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report)
The fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 26% over the 3-year and 18.6% of the 5-year period. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
The Fidelity Select Software & IT Services Portfolio fund, as of the last filing, allocates their fund in top two major groups; Large Growth and Foreign Bond. Further, as of the last filing, Microsoft Corp, Visa Inc and Adobe Systems Inc were the top holdings for FSCSX.
This Zacks Mutual Fund Rank #1 (Strong Buy) was incepted in July 1985 and is managed by Fidelity. FSCSX carries an expense ratio of 0.72% and requires a minimal initial investment of $0.
Janus Global Technology T (JAGTX - Free Report)
The fund invests a huge part of its assets in equity securities of those companies that are expected to gain from improvements or advancements in technology. JAGTX seeks capital appreciation for the long run and invests in both domestic and foreign companies with stable growth potential. It generally invests in companies from different nations including the United States.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 3 and 5-year benchmarks are 26% and 18.6%, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
The Janus Global Technology T fund, as of the last filing, allocates their fund in the top two major groups; Foreign Stock and Emerging Market. Further, as of the last filing, Microsoft Corp, Alphabet Inc. and Alibaba Group Holding Ltd. were the top holdings for JAGTX.
This Zacks Rank #1 (Strong Buy) was incepted in December 1998 and is managed by Janus Fund. JAGTX carries an expense ratio of 0.92% and requires a minimal initial investment of $2,500.
To Conclude
While both JAGTX and FSCSX carry a Zacks Mutual Fund Rank #1, upon having a closer look, we find that the latter is a clear winner. FSCSX is not only dirt cheap (it has no minimum initial investment), its administrative and other operating expenses are lower compared to JAGTX. So, one should clearly bet on FSCSX for higher returns on low investments.
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 >>