With the growing importance of technology in our lives, the future prospects of this sector seem all the more promising. The phenomenal growth of technology funds during the late nineties and their rapid decline during the meltdown that followed has led some investors to view these funds with a certain amount of skepticism. Yet for investors, looking for long-term aggressive growth, technology funds could be a prudent choice and should continue to be so in the future.
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.
Firsthand Technology Value (TVFQX) seeks capital appreciation by investing the majority of its assets in technology stocks which are undervalued and may grow appreciably. It invests in companies with a wide range of market capitalizations and may also consider smaller lesser known firms. The fund returned 32.87% over the last one year period
The fund manager is Kevin M. Landis and he has managed this technology fund since 1994.
Baron iOpportunity (BIOPX) invests in companies of all sizes operating in sectors with high growth potential. It seeks out firms which it expects to capitalize on technological innovations and advancements. It concentrates on securities that may double in value over a four-year period. It is a no-load fund.
This technology fund has a five year annualized return of 5.09%.
AllianceBernstein Global Thematic Growth A (ALTFX) seeks growth of capital by investing in companies in diverse sectors which would benefit from technological innovation. It purchases both domestic and foreign firms and uses a bottom-up approach to select prospective investments. The fund returned 55.64% over the last one year period.
The technology fund has a minimum initial investment of $2,500 and an expense ratio of 1.70% compared to a category average of 1.53%.
Henderson Global Technology A (HFGAX) invests a large share of its assets in companies which have the potential to benefit from technological advancements and innovation. It invests in companies worldwide and purchases stocks in firms with smaller market capitalizations. The fund has a five year annualized return of 6.14%.
As of December 2009, this technology fund held 53 issues, with 4.52% of its total assets invested in Apple Inc.
Fidelity Select Communications Equipment (FSDCX) seeks capital growth by investing at least 80% of its assets in companies engaged in the communications equipment business. It focuses less on companies whose business involves conventional means of communication such as telephone companies and long distance carriers. Instead, it concentrates on those which leverage new technologies to deliver its services. The fund returned 68.38% in 2009.
Yun-Min Chai is the fund manager and has managed this technology fund since 2003.
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/
