Top 5 Technology Mutual Funds (March 2011)

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.

Red Oak Technology Select (ROGSX) invests the majority of its assets in firms which depend heavily on technology for product development or operations or expect to gain from technological advancements. Not more than 25% of its assets may be invested in companies whose primary operations concern computers, semiconductors and electronics. The technology mutual fund returned 27.81% in the last one year period.

The fund manager is Mark W. Oelschlager and he has managed this technology mutual fund since 2006.

Dreyfus Technology Growth A (DTGRX) seeks capital appreciation. At least 80% of the fund’s assets are invested in companies who are producers in the technology sector or seeking to benefit from advances in this domain. The technology mutual fund has a three year annualized return of 10.35%.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.51% compared to a category average of 1.72%.

Northern Technology (NTCHX) invests heavily in securities of companies whose primary operations are related to technology. The fund invests more than 25% of its total assets in firms in the computers business, including hardware, software and components. The technology mutual fund returned 36.99% in the last one year period.

As of December 2010, this technology mutual fund held 69 issues, with 4.44% of its total assets invested in Apple, Inc.

RS Technology A (RSIFX) seeks capital growth over the long term. The fund invests a large share 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. The technology mutual fund has a five year annualized return of 8.07%.

The fund manager is Allison J. Thacker and she has managed this technology mutual fund since 2003.

Invesco Technology Investor (FTCHX) invests primarily in companies which leverage technology in product development or operations. The fund focuses in acquiring common stocks and more than half of its assets may be utilized to purchase foreign securities. The technology mutual fund returned 35.08% in the last one year period.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.65% compared to a category average of 1.72%.

To view the Zacks Rank and past performance of all technology mutual funds, then click here.

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