5 Top-Rated Technology Mutual Funds to Buy Now - Mutual Fund Commentary

More often than not the technology sector is likely to report above par earnings compared to other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and fairly longer investment horizon should park their savings in these funds.

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.

Fidelity Select Electronics (FSELX) seeks capital growth. The fund invests the majority of its assets in companies whose primary operations are related to electronics. Investments are made in both domestic and foreign companies. The fund uses fundamental analysis to select companies for investment purposes. The non-diversified technology mutual fund has a one year return of 37.9%.

This fund has an expense ratio of 0.79% as compared to category average of 1.49%.

T Rowe Price Global Tech Fund (PRGTX) invests a lion's share of its assets throughout the world in the common stocks of companies that generate a majority of their revenues from the development, advancement, and use of technology. The fund invests in a minimum of 5 countries and a minimum of 25% of its assets is invested in foreign companies. It invests in firms with established track records. The technology mutual fund has a one year return of 39.8%.

Joshua K. Spencer is the fund manager and has managed the fund since 2012.

USAA Science & Technology (USSCX) seeks capital growth over the long run. It invests a large portion of its assets in companies which are expected to gain from science and technology advancement. It may invest a maximum of half of its assets in foreign firms. The technology mutual fund has a one year return of 28.2%.

As of April 2014, this fund held 153 issues with 16.69% invested in Verizon Communications Inc.

Fidelity Select Communications Equip Portfolio (FSDCX) invests the majority of its assets in companies involved in the production and development of communications equipments. Factors such as financial strength and economic condition are taken into consideration to invest in companies all over the globe. The non-diversified technology mutual fund has a one year return of 16.3%.

This fund has an expense ratio of 0.90% as compared to category average of 1.49%.

Buffalo Discovery (BUFTX) seeks long-term capital appreciation. It invests in equities of companies that use technological development and advancement to enhance its value. Although it invests in domestic firms, it may also invest a maximum of 20% of its assets in non U.S. companies through ADRs and other securities that are traded in the U.S. The technology mutual fund has a one year return of 16.5%.

Elizabeth Jones is the fund manager and has managed the fund since 2004.

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 in our Mutual Fund Center.