Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. So far this reporting cycle, the sector’s earnings have been better 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, the 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 three top-ranked technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
T. Rowe Price Communications & Technology Fund Investor Class (PRMTX - Free Report) invests heavily in securities of communications and technology companies. PRMTX may invest in securities of U.S. as well as non-U.S. companies. These companies are involved in a variety of Internet-related industries such as e-commerce and digital products, and services firms, media, including publishing, advertising, broadcasting, and cable and satellite TV companies among others. PRMTX has three-year annualized returns of 19.3%.
Paul D. Greene is the fund manager of PRMTX since 2013.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) 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. FSCSX has three-year annualized returns of 26%.
As of December 2019, FSCSX held 61 issues with 25.02% of its assets invested in Microsoft Corp.
BlackRock Technology Opportunities Fund Investor A Shares (BGSAX - Free Report) aims for long-term capital appreciation. The fund invests the 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 technology. BGSAX has three-year annualized returns of 29.1%.
BGSAX has an expense ratio of 1.18% compared to the category average of 1.30%.
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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