Investors seeking long-term aggressive holdings and possessing the appetite to stomach the volatility involved would do well to consider technology funds. Funds from this industry sector are still a nascent category and emerged as a category to reckon with only in the 1990s. Tech funds enjoyed tremendous growth the years that followed, but their subsequent decline has kept the risk-averse investor away. However, since this market bubble burst, fund prices have been based on stronger fundamentals, 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.
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 7.62%.
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 29.08% in the last one year period.
As of April 2011, this technology mutual fund held 89 issues, with 12.83% of its total assets invested in Apple, Inc.
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 five year annualized return of 8.4%.
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 1.67%.
Waddell & Reed Science & Technology A (UNSCX) invests the majority of its assets in science and technology companies. The fund focuses on investing in mid and small-cap companies but may also invest in larger firms. This technology mutual fund returned 28.16% in the last one year period.
The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.
Wells Fargo Advantage Specialized Technology A (WFSTX) seeks capital growth over the long term. The fund 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. The technology mutual fund has a ten year annualized return of 6.75%.
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 1.67%.
To view the Zacks Rank and past performance of all technology mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfunds.