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3 Technology Mutual Funds for Excellent Returns

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Risk takers 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 Select Technology (FSPTX - Free Report) , Janus Henderson Glb Tech and Innovt (JNGTX - Free Report) and DWS Science and Technology Fund (KTCAX - 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 Select Technology fund seeks capital appreciation. FSPTX in common stocks of companies principally engaged in offering, using, or developing products, processes, or services that will provide, or will benefit significantly from technological advances and improvements.

Fidelity Select Technology has three-year annualized returns of 14%. As of the end of November 2024, FSPTX held 75 issues, with 21.5% of its assets invested in NVIDIA Corp.

Janus Henderson Glb Tech and Innovt fund aims for long-term growth of capital and specializes in technology. JNGTX invests the majority of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology.

Janus Henderson Glb Tech and Innovt has three-year annualized returns of 13.7%.JNGTX has an expense ratio of 0.78% compared with the category average of 1%.

DWS Science and Technology Fund seeks capital appreciation by investing most of its assets in common stocks of U.S. companies in the technology sector. KTCAX advisors use 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 16.5%. Sebastian P. Werner has been the fund manager of KTCAX since December 2017.

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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