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.
DWS Technology A (KTCAX) invests the majority of its assets in common stocks of companies in the technology domain. The fund invests in companies regardless of their size or market capitalization. Not more than 35% of its assets are utilized to purchase foreign securities. The technology mutual fund returned 15.47% in the last one year period.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.13% compared to a category average of 1.76%.
Dreyfus Technology Growth A (DTGRX) seeks capital growth over the long term. At least 80% of its assets are invested in companies who are producers in the technology sector or seeking to benefit from advances in this domain. The technology mutual fund has a five year annualized return of 2.7%.
The fund manager is Barry Mills and he has managed this technology mutual fund since 2007.
HighMark NYSE ArcaTech 100 Index A (PPTIX) invests at least 90% of its assets in securities which make up the ArcaEx Tech 100 index. Not more than 10% of the fund’s assets may be utilized to enter into index futures and options contracts. The technology mutual fund returned 16.18% in the last one year period.
As of June 2010, this technology mutual fund held 100 issues, with 8.44% of its total assets invested in Apple, Inc.
Henderson Global Technology (HFGAX) seeks capital appreciation over the long term. The majority of its assets are used to purchase equity securities of companies in the technology domain. The fund has no fixed guidelines relating to the geographic distribution of its investments. The technology mutual fund returned 20.87% in the last one year and has a five year annualized return of 7.25%.
The technology mutual fund has a minimum initial investment of $500 and an expense ratio of 1.81% compared to a category average of 1.76%.
Northern Technology (NTCHX) invests heavily in securities of companies whose primary operations are related to technology. The fund invests in excess of 25% of its total assets in firms in the computers business, including hardware, software and components. It is a no-load fund.
This technology mutual fund returned 14.67% in the last one year period.
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/
