Technology mutual funds are ideal for investors looking for long-term growth and solid returns. Improving industry fundamentals and emerging technologies such as artificial intelligence, machine learning, robotics, and data science are key catalysts for the industry’s growth.
In addition, funds investing in technology sector securities mostly take a growth-oriented approach, focusing on companies with strong fundamentals and relatively good investment prospects. Technology already has a broader meaning than hardware and software. Social media and internet companies are now part of the technology landscape.
Below, we share with you three tech mutual funds, namely, Fidelity Select Semiconductor Portfolio (FSELX – free report), Fidelity Select Computers (FDCPX – free report) and DWS Technology Fund (Catacax – free report). Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to view the full list of tech funds.
Fidelity Select Semiconductor Portfolio Invests a substantial portion of its net assets in the common stock of domestic and foreign companies primarily engaged in the design, manufacture or sale of semiconductors and semiconductor equipment. FSELX advisors select stocks for investment based on fundamental analysis factors such as financial condition, industry position, and market and economic outlook.
The three-year annualized return for the Fidelity Select Semiconductors portfolio is 14.10%. As of the end of August 2022, FSELX held 45 shares, with 20.48% of its assets invested in Nvidia Corp.
Fidelity Select Computers Invests a substantial portion of its net assets in the securities of domestic and foreign companies primarily engaged in the development, manufacture or distribution of technology hardware. FDCPX advisors use fundamental analysis factors such as each issuer’s financial condition, industry position, and market and economic conditions to make investment decisions.
Fidelity Select Computer’s three-year annualized return is 8.8%. FDCPX has an expense ratio of 0.72%, compared to the category average of 1.05%.
DWS Technology Fund Invest a substantial portion of their assets, together with borrowings, if any, in the common stock of domestic and foreign (including emerging market) companies, regardless of market capitalization, in the technology sector. KTCAX Advisors also invests in initial public offerings.
The three-year annualized rate of return of the DWS Technology Fund is 4.4%. Daniel J. Fletcher has been the fund manager of KTCAX since December 2017.
To check the Zacks Rank and the past performance of all technology mutual funds, investors can click here to see the full list of technology funds.
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