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.
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 returned 14.87% in the last one year period.
The fund manager is Barry Mills and he has managed this technology mutual fund since 2007.
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 has a three year annualized return of 3.51%.
As of June 2011, this technology mutual fund held 71 issues, with 4.57% of its total assets invested in Apple, Inc.
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. This technology mutual fund returned 10.36% in the last one year period.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.50% compared to a category average of 1.67%.
RS Technology A (RSIFX) 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 7.96%.
The fund manager is Stephen J. Bishop and he has managed this technology mutual fund since 2001.
Kinetics Internet No Load (WWWFX) seeks capital appreciation over the long term, with a secondary objective of current income. The fund primarily invests in domestic and foreign companies whose primary business operations concern the Internet and Internet-related activities. The fund purchases common stocks, convertible securities, warrants and other equity securities. The technology mutual fund returned 27.92% in the last one year period.
The technology mutual fund has a minimum initial investment otechnolf $2,500 and an expense ratio of 1.89% compared to a category average of 1.41%.
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.