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) or 2 (Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
Fidelity Select Software & IT Services Portfolio FSCSX fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. FSCSX has three-year annualized returns of 21.1%.
As of the end of April 2020, FSCSX held 64 issues with 26.7% of its assets invested in Microsoft Corp.
BlackRock Technology Opportunities Fund Investor A Shares BGSAX fund aims for long-term capital appreciation. The fund invests majority of its assets in equity securities of U.S. and foreign companies across all market capitalizations that have fast and sustainable growth potential from the development, advancement and implementation of science and technology. BGSAX has three-year annualized returns of 25%.
BGSAX has an expense ratio of 1.18% compared to the category average of 1.29%.
T. Rowe Price Communications & Technology Fund Investor Class PRMTX invests heavily in securities of communications and technology companies. PRMTX may invest in securities of U.S. as well as non-U.S. companies. These companies are involved in a variety of Internet-related industries such as e-commerce and digital products, and services firms, media, including publishing, advertising, broadcasting, and cable and satellite TV companies. PRMTX has three-year annualized returns of 17%.
James Stillwagon is the fund manager of PRMTX since 2019.
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 (FSCSX): Fund Analysis Report
Get Your Free (PRMTX): Fund Analysis Report
Get Your Free (BGSAX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research