Zacks #1 Ranked Technology Mutual Funds - Best of Funds

Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.

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, investors can click here to see the complete list of funds.

Putnam Global Technology A (PGTAX) seeks growth of capital. It invests in both growth and value stocks of mid to large-cap companies located across the world. Investments are made in companies that have the potential to develop advance technologies and products for consumers, firms or government bodies. This technology mutual fund has a five year annualized return of 16.82%.

This non-diversified fund has an expense ratio of 1.36% as compared to category average of 1.55%.

Wells Fargo Advantage Specialized Technology A (WFSTX) invests the majority of its assets in the technology sector. A maximum of half of its assets are invested in foreign equity securities. Not more than 25% of its assets may be invested in a foreign country. This technology mutual fund has a five year annualized return of 23.09%.

As of January 2014, this fund held 65 issues with 6.08% invested in Facebook Inc.

Dreyfus Technology Growth A (DTGRX) seeks growth of capital. A lion's share is invested in emerging growth, cyclical or stable growth companies that are expected to benefit from advancements in the technology sector. Companies with high earnings and revenue growth prospects are selected for investments and they can be of any size. This technology mutual fund has a five year annualized return of 22.47%.

Barry Mills is the fund manager and has managed this fund since 2007.

Fidelity Select Software & Computer (FSCSX) seeks capital growth. The fund invests in securities of companies whose primary operations are related to software or information-based services. It invests in domestic as well as in foreign companies using both fundamental analysis as well as considering market and economic factors. This technology mutual fund has a five year annualized return of 27.70%.

The fund has an expense ratio of 0.80% as compared to category average of 1.55%.

Red Oak Technology Select (ROGSX) invests majority of its assets in companies related to the technology industry. It mainly focuses on domestic companies. However, it may also invest in foreign firms and American Depositary Receipts. This technology mutual fund has a five year annualized return of 26.59%.

As of December 2013, this fund held 36 issues with 5.17% of its assets invested in Alliance Data Systems Corporation.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.

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.

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