More often than not the technology sector is likely to report above par earnings than 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 order to minimize this volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively longer investment horizon. Investors having an above par appetite for risk and fairly long investment horizon should park some of 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 mutual funds, investors can click here to see the complete list of funds.
Franklin DynaTech A (FKDNX) seeks capital growth. FKDNX mostly invests in companies that the manager believes are leaders in innovation, have superior management, can reap the benefit of new technologies and have an advantage from new industry situations in the dynamically fluctuating global economy. FKDNX invests primarily in common stock. FKDNX invests in companies of any sector or of any market capitalization. FKDNX also invests in companies both inside and outside the United States. The Franklin DynaTech A fund has returned 19.3% in the last one year period.
FKDNX has an expense ratio of 0.89% as compared to category average of 1.18%.
BlackRock Science & Technology Opportunities Investor A (BGSAX) invests a large portion of its assets in equity securities issued by U.S. and non-U.S. science and technology companies in all market capitalization ranges. BGSAX may invest a maximum 25% of its assets in emerging economies. BGSAX mostly invests in common stock. BGSAX may also invest in Rule 144A securities that are privately placed securities acquired by qualified institutional buyers. The BlackRock Science & Technology Opportunities Investor A fund has returned 17.5% in the last one year period.
