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 the other sectors due to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and artificial intelligence 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.

Fidelity Select Software & IT Services Portfolio No Load (FSCSX – Free Report) invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. FSCSX has three-year annualized returns of 20.6%.

As of March 2018, FSCSX held 61 issues with 17.08% of its assets invested in Microsoft Corp.

Fidelity Select Semiconductors (FSELX – Free Report) invests the bulk of its assets in common stocks of companies involved in the manufacture, design, and sale of electronic equipment and components. FSELX seeks growth of capital. The fund invests in both U.S. companies and non-U.S. companies. The fund analyses the industry position and financial condition of companies to select for investments. FSELX has three-year annualized returns of 21%.

FSELX has an expense ratio of 0.74% as compared to the category average of 1.38%.