The technology sector is more 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 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 a fairly longer investment horizon should park their savings in these funds.
Below we will share with you 4 buy-rated technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (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.
Columbia Seligman Global Technology A (SHGTX – MF report) seeks long-term capital growth. SHGTX invests a major portion of its assets in equities of technology companies located throughout the globe. SHGTX invests across a wide range of countries. SHGTX invests a minimum of 40% of its assets in foreign companies that are not traded in the US. The Columbia Seligman Global Technology A is a non-diversified fund and has returned 21.3% over the past one year.
SHGTX has an expense ratio of 1.46% as compared to the category average of 1.47%.
BlackRock Science & Technology Opportunities Investor A (BGSAX – MF report) invests the majority of its assets in equity securities issued by domestic and foreign science and technology companies. BGSAX may invest a maximum 25% of its net assets in emerging economies. BGSAX generally invests in common stocks but may also invest in preferred stocks and convertible securities. The BlackRock Science & Technology Opportunities Investor A has returned 19.3% over the past one year.
As of August 2015, BGSAX held 158 issues with 6.41% invested in Apple Inc
Fidelity Advisor Electronics A (FELAX – MF report) seeks capital appreciation. FELAX invests a large portion of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies. FELAX uses a fundamental analysis to select companies for investment purposes. The Fidelity Advisor Electronics A is a non-diversified fund and has returned 21.2% over the past one year.
FELAX has an expense ratio of 1.27% as compared to the category average of 1.47%.
T Rowe Price Global Technology Fund (PRGTX – MF report) invests a major portion of its assets throughout the world in the common stocks of companies that derive their revenues from the development, advancement, and use of technology. PRGTX invests in a minimum of 5 countries and a minimum 25% of its assets are invested in foreign companies. PRGTX invests in firms with an established track record. The T Rowe Price Global Technology Fund has returned 21.2% in the last one year.
Joshua K. Spencer is the fund manager and has managed PRGTX since 2012.
