Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. It is believed that the technology sector is poised for a brighter earnings performance than others due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and AI are the key catalysts to the sector’s growth.
Meanwhile, most of the mutual funds investing in securities from these sectors opt for a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively higher investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. 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) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Select Wireless Portfolio (FWRLX – Free Report) fund aims for capital appreciation. It invests the majority of its assets in securities of companies that are engaged in activities relating to wireless communications services or products. FWRLX has three-year annualized returns of 18%.
As of November 2019, FWRLX held 45 issues with 19.22% of its assets invested in Apple Inc.
DWS Science and Technology Fund – Class A (KTCAX – Free Report) aims for capital growth that can be achieved by investing in technology companies. Therefore, the fund invests the majority of its assets in common stocks of companies that operate in the technology sector. The fund mostly aims to invest in companies that develop and implement scientific and technological innovation, which can offer high levels of growth. KTCAX has three-year annualized returns of 24.1%.
KTCAX has an expense ratio of 0.93% as compared to the category average of 1.30%.
Janus Henderson Global Technology Fund Class D (JNGTX – Free Report) seeks appreciation of capital in the long run. The fund invests the majority of in companies that are expected to benefit from technological advancement. JNGTX invests in equity securities of both American and foreign companies that have impressive growth prospects. The fund also invests about two-fifths of its assets in securities of companies that are economically tied to different countries across the globe, excluding the United States. JNGTX has three-year annualized returns of 28.4%.
Denny Fish is the fund manager of JNGTX since 2016.
To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.
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