Technology mutual funds are ideal for investors who seek long-term growth and impressive returns. This sector has a better earnings performance than other sectors, thanks to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as artificial intelligence, machine learning, robotics and data science are key catalysts to the sector’s growth.
In addition, a majority of funds investing in securities from the technology sector take a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively better 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 four top-ranked technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
BlackRock Technology Opportunities Fund (BGSAX - Free Report) aims for long-term capital appreciation. The fund invests a majority of its assets in equity securities of U.S. and foreign companies across all market capitalizations that have fast and sustainable growth potential from the development, advancement and implementation of science and/or technology. BGSAX has returned 34.5% on a year-to-date basis.
Tony Kim is the fund manager of BGSAX since 2013.
DWS Science and Technology Fund (KTCAX - Free Report) aims for capital growth that can be achieved by investing in technology companies. Therefore, the fund invests a majority of its assets in common stocks of companies that operate in the technology sector. The fund mostly aims to invest in companies that develop and implement scientific and technological innovation, which can offer high levels of growth. KTCAX has returned 29.4% on a year-to-date basis.
KTCAX has an expense ratio of 0.93% as compared to the category average of 1.28%.
Fidelity Select Wireless Portfolio (FWRLX - Free Report) fund aims for capital appreciation. The fund invests a majority of its assets in securities of companies that are engaged in activities relating to wireless communications services or products. FWRLX has returned 21.4% on a year-to-date basis.
As of Jun 2019, FWRLX held 50 issues with 15.91% of its assets invested in Apple Inc.
Fidelity Select Semiconductors Portfolio (FSELX - Free Report) fund aims for capital growth. The fund invests a majority of its assets in securities of companies that are engaged in various operations in the technology sector. These include design, manufacture or sale of electronic components, semiconductors and related equipment etc. FSELX has returned 35.4% on a year-to-date basis.
FSELX has an expense ratio of 0.73% as compared to the category average of 1.28%.
To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.
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