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 in the years that followed, but their subsequent decline has kept the risk-averse investor away. However, since the tech 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 funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all technology funds, then click here.
Wells Fargo Advantage Specialized Technology A (WFSTX) 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. Not more than 25% of its assets may be invested in one country. The fund returned 20.28% in the last one year period.
The fund has a minimum initial investment of $1,000 and an expense ratio of 1.75% compared to a category average of 1.76%.
RS Technology A (RSIFX) seeks capital growth over the long term. It invests at least 80% 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 fund has a five year annualized return of 4.3%.
The fund manager is Stephen J. Bishop and he has managed this technology fund since 2001.
Wasatch Global Science & Technology (WAGTX) invests the majority of its assets in domestic and foreign companies in the science and technology domain. It invests in at least three developed countries including the U.S. The fund returned 25.87% in the last one year period.
As of March 2010, this technology fund held 78 issues, with 5.78% of its total assets invested in State Street/Ficc Repo.
Fidelity Select Software and Computer Services (FSCSX) seeks long term capital growth. At least 80% of its assets are invested in companies whose principal operations are related to software or information-based services. The fund may purchase foreign securities and invest a heavily in a single issuer. The fund returned 17.27% in the last one year and has a five year annualized return of 6.59%.
The technology fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.76%.
Firsthand Technology Opportunities (TEFQX) invests a large portion of its assets in companies whose primary operations are related to high technology. The fund selects companies on the basis of their growth potential in their specific sector. It invests in companies of all sizes and may invest in relatively newer companies. It is a no-load fund.
This technology fund returned 32.7% in the last one year period.
To view the Zacks Rank and past performance of all technology 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/mutualfund/
