The crisis in Japan has raised concerns over the supply chain for many technology firms, affecting the semiconductor segment in particular. However, this is a near term phenomenon at best and major high quality technology companies are expected to generate good cash flows. Mergers and acquisitions activity is also expected to remain high with strategic decisions being unaffected by global concerns. In depth research and widely diversified portfolios make mutual funds the best option for investors wanting to venture into the technology sector.
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.
T. Rowe Price Global Technology (PRGTX) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund focuses on acquiring common stock and invests at least 30% of its assets in both mature and developing foreign markets. The technology mutual fund returned 40.65% in the last one year period.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.04% compared to a category average of 1.72%.
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 three year annualized return of 15.48%.
The fund manager is Yun-Min Chai and he has managed this technology mutual fund since 2007.
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 33.06% in the last one year period.
As of February 2011, this technology mutual fund held 89 issues, with 12.86% of its total assets invested in Apple, Inc.
Northern Technology (NTCHX) seeks capital appreciation over the long term. The fund 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 has a five year annualized return of 5.6%.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.25% compared to a category average of 1.72%.
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 36.75% in the last one year period.
The fund manager is Warren T. Tennant and he has managed this technology mutual fund since 2008.
To view the Zacks Rank and past performance of all technology mutual funds, then click here.