Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.
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.
Wells Fargo Advantage Specialized Technology A (WFSTX) invests the majority of its assets in equity securities of companies in the technology domain. The fund may utilize up to half of its assets to purchase foreign securities. Not more than 25% of its assets may be invested in one country. The technology mutual fund returned 27.01% in the last one year period.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.75% compared to a category average of 1.74%.
Goldman Sachs Technology Tollkeeper A (GITAX) seeks long term capital appreciation. At least 80% of its assets are invested in equity securities of Tollkeeper companies .These are companies that are positioned to benefit from the proliferation of technology. The technology mutual fund has a three year annualized return of 4.67%.
The fund manager is Steven M. Barry and he has managed this technology mutual fund since 1999.
DWS Technology A (KTCAX) invests the majority of its assets in common stocks of companies in the technology domain. The fund invests in companies regardless of their size or market capitalization. Not more than 35% of its assets are utilized to purchase foreign securities. The technology mutual fund returned 18.28% in the last one year period.
As of December 2010, this technology mutual fund held 84 issues, with 12.34% of its total assets invested in Apple, Inc.
Fidelity Select Technology (FSPTX) seeks long term capital growth. The fund invests primarily in companies that develop or offer products, processes, or services that benefit significantly from technological advances. The technology mutual fund has a five year annualized return of 8.71%.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.74%.
MFS Technology A (MTCAX) invests a large share of its assets in companies whose businesses gain from advancements in the technology domain. Domestic and foreign stocks, including emerging market securities constitute its major investments. The technology mutual fund returned 20.11% in the last one year period.
The fund manager is Telis D. Bertsekas and he has managed this technology mutual fund since 2005.
To view the Zacks Rank and past performance of all technology mutual funds, then click here.