Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics and data science are the key catalysts to the sector’s growth.
In addition, the majority of funds investing in securities from the technology sector take a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software. 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.
Putnam Global Technology Fund Class A PGTAX aims for capital appreciation. This non-diversified fund invests primarily in common stocks of large and midsize companies worldwide. It invests the majority of its assets in securities of companies in the technology industries. PGTAX has returned nearly 28.5% in the past three years.
As of the end of March 2021, PGTAX held 96 issues with 11.78% of its assets invested in Microsoft Corp.
Fidelity Select Software & IT Services Portfolio FSCSX aims for capital appreciation. The non-diversified fund invests the majority of its assets in common stocks of companies engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. FSCSX has three-year annualized returns of 25.8%.
Ali Khan is one the fund managers of FSCSX since 2014.
Franklin DynaTech Fund Class A FKDNX aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions. FKDNX has three-year annualized returns of 25.5%.
FKDNX has an expense ratio of 0.85% compared to the category average of 0.99%.
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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