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, 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 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 majority of its assets in securities of companies in the technology industries. PGTAX has returned nearly 32.8% in the past three years.
As of the end of December 2020, PGTAX held 91 issues with 13.73% of its assets invested in Microsoft Corp.
BlackRock Technology Opportunities Fund Investor A Shares BGSAX aims for long-term capital appreciation. The fund invests majority of assets in equity securities issued by domestic as well as foreign technology companies across all market capitalization ranges. Such companies are selected primarily for their rapid and sustainable growth potential from the development, advancement and use of technology. BGSAX has three-year annualized returns of 39.8%.
Tony Kim is one the fund managers of BGSAX since 2013.
Fidelity Select Semiconductors Portfolio FSELX fund aims for capital appreciation. The non-diversified fund invests majority of assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX has three-year annualized returns of 27.9%.
FSELX has an expense ratio of 0.72% compared to the category average of 1.24%.
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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