Investors seeking long-term aggressive holdings need not look beyond mutual funds betting on the technology sector. Even though such funds experience relatively higher levels of volatility, they tend to outperform other categories when markets as a whole are seeing an uptrend. Recent results from tech firms have also shown that the sector is gearing up to enter a new era of success and prosperity. Further, fund prices are based on stronger fundamentals compared to their initial boom period, substantially reducing the risk involved.
Below we will share with you 5 top rated technology mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
RS Technology A (RSIFX) seeks capital growth over the long term. It invests at least 80% of its assets in equity securities of technology companies. It concentrates on purchasing securities of small and mid-cap companies. The fund invests heavily in domestic companies but may also purchase foreign securities. This technology mutual fund returned 23.3% in the last one year period.
The fund manager is Stephen J. Bishop and he has managed this technology mutual fund since 2001.
Firsthand Technology Opportunities (TEFQX) invests a large portion of its assets in companies whose primary operations are related to high technology. The fund selects companies on the basis of their growth potential in their specific sector. It invests in companies of all sizes and may invest in relatively newer companies. It is a no-load fund.
The technology mutual fund has a three year annualized return of 3.96%.
Dreyfus Technology Growth A (DTGRX) seeks capital appreciation. At least 80% of its assets are invested in companies who are producers in the technology sector or seeking to benefit from advances in this domain. This technology mutual fund returned 19.05% in the last one year period.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.67% compared to a category average of 1.75%.
Henderson Global Technology (HFGAX) invests the majority of its assets are used to purchase equity securities of companies in the technology domain. The fund has no fixed guidelines relating to the geographic distribution of its investments. The technology mutual fund returned 18.91% in the last one year and has a five year annualized return of 6.6%.
As of June 2010, this technology mutual fund held 55 issues, with 4.68% of its total assets invested in Apple, Inc.
Northern Technology (NTCHX) seeks capital growth over the long term. The fund invests heavily in securities of companies whose primary operations are related to technology. The fund invests in excess of 25% of its total assets in firms in the computers business, including hardware, software and components. This technology mutual fund returned 10.46% in the last one year period.
The fund manager is Deborah Koch and she has managed this technology mutual fund since 2004.
To view the Zacks Rank and past performance of all technology mutual funds, then click here.