Mutual funds focusing on the technology domain not only invest in companies operating in the sector but also bet on firms who seek to leverage advances in technology. This category emerged as a force to reckon with only about twenty years ago, but their subsequent slide has led many investors to eschew this class of funds. Subsequently, fund prices have been based on stronger fundamentals, substantially reducing the risk involved. With the advantages of professional management, mutual funds are the best option for investing in this category.
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. 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 technology mutual fund returned 34.4% in the last one year period.
The fund manager is Walter C. Price, Jr. and he has managed this technology mutual fund since 2000.
Matthews Asia Science & Technology Investor (MATFX) seeks capital growth over the long term. The fund invests heavily in companies located in Asia which generate more than half of their revenues from product and services sales in technology related industries and services. The technology mutual fund has a five year annualized return of 10.12%.
As of December 2010, this technology mutual fund held 61 issues, with 5.73% of its total assets invested in Baidu, Inc. ADR.
Invesco Technology Investor (FTCHX) invests primarily in companies which leverage technology in product development or operations. More than half of the fund’s assets may be utilized to purchase foreign securities. The technology mutual fund returned 24.97% in the last one year period.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.65% compared to a category average of 1.70%.
Kinetics Internet No Load (WWWFX) seeks capital appreciation over the long term with a secondary objective of current income. The fund primarily invests in common stocks, convertible securities, warrants and other equity securities. This technology mutual fund has a three year annualized return of 11.02%.
The fund manager is Peter B. Doyle and he has managed this technology mutual fund since 1999.
T. Rowe Price Global Technology (PRGTX) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund invests at least 30% of its assets in both mature and developing foreign markets. The technology mutual fund returned 30.08% in the last one year period.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.04% compared to a category average of 1.70%.
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/mutualfund/
View All Zacks #1 Ranked Mutual Funds
Zacks Investment Research
