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3 Technology Mutual Funds for Solid Returns

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Risk lovers seeking healthy returns over a fairly long investment horizon may opt for technology mutual funds. The technology sector is believed to be poised for a brighter earnings performance than others owing to innovation and greater demand. Improving industry fundamentals and emerging technologies — such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence — are the key catalysts for the sector.

Meanwhile, most mutual funds investing in securities from these sectors prefer a growth-oriented approach, focusing on companies with strong fundamentals and relatively higher investment prospects. Technology now has broader coverage than just hardware and software companies. Social media and Internet companies are also part of the technology landscape today.

Below, we share with you three technology mutual funds, viz Fidelity Advisor Semiconductors Fund (FELIX - Free Report) , DWS Science and Technology Fund (KTCAX - Free Report) and T. Rowe Price Science and Technology Fund (PRSCX - 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 see the complete list of technology funds.

Fidelity Advisor Semiconductors Fund seeks capital appreciation. FELIX invests primarily in common stocks and securities of companies principally engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors.

Fidelity Advisor Semiconductors Fund has three-year annualized returns of 31.6%. As of January 2023, FELIX held 39 issues, with 24.7% of its assets invested in NVIDIA.

DWS Science and Technology Fund seeks growth of capital by investing most of its assets in common stocks of U.S. companies in the technology sector. KTCAX advisors uses in-depth research to select a diverse portfolio of technology companies that have robust and sustainable earnings growth, large and growing markets, leading products and services, and strong balance sheets.

DWS Science and Technology Fund has three-year annualized returns of 10.9%. Sebastian P. Werner has been one of the fund managers of KTCAX since November 2017.

T. Rowe Price Science and Technology Fund seeks long-term capital growth. PRSCX invests most of its assets in common stocks of companies expected by T. Rowe Price to benefit from the development, advancement, and use of science and technology.

T. Rowe Price Science and Technology Fund has three-year annualized returns of 8.6%. PRSCX has an expense ratio of 0.84% compared with the category average of 1.05%.

To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.

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