Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics and data science are the key catalysts to the sector’s growth.
In addition, the majority of funds investing in securities from the technology sector take a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.
Below we share with you three top-ranked technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
Fidelity Select Semiconductors Portfolio FSELX fund aims for capital appreciation. The non-diversified fund invests the majority of its assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX has three-year annualized returns of 22.9%.
As of the end of June 2020, FSELX held 40 issues with 16.5% of its assets invested in NVIDIA Corp.
DWS Science and Technology Fund – Class A KTCAX aims for growth of capital. The fund invests the majority of its assets in common stocks of science and technology companies. This non-diversified fund could invest up to 35% of net assets in foreign securities. KTCAX has three-year annualized returns of 23.7%.
KTCAXhas an expense ratio of 0.93% compared to the category average of 1.29%.
Franklin DynaTech Fund Class A FKDNX aims for capital appreciation. The fund primarily invests in common stocks of companies which the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management and benefit from new industry conditions in the dynamically changing global economy. FKDNX has three-year annualized returns of 24.6%.
Rupert H. Johnson is the fund manager of FKDNX since 1968.
To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (FSELX): Fund Analysis Report
Get Your Free (KTCAX): Fund Analysis Report
Get Your Free (FKDNX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research