Grab These 3 Tech Mutual Funds For Spectacular Returns
RRisk-seekers looking for good returns over a long enough investment horizon can opt for technology mutual funds. The tech sector is believed to be poised to outperform the rest due to innovation and increased demand. Improving industry fundamentals and emerging technologies – such as wearables, VR headsets, drones, virtual reality devices and artificial intelligence – are the main catalysts for the sector.
Meanwhile, most mutual funds investing in stocks in these sectors prefer a growth-oriented approach, focusing on companies with strong fundamentals and a relatively higher investment prospect. Additionally, the technology now has a wider coverage than just hardware and software companies. Social media and internet companies are also part of today’s technology landscape.
Below, we share with you three top-ranked technology mutual funds, namely, Fidelity Advisor Semiconductors Class I Fund FELIX, Fidelity Select Technology Portfolio FSPTX, and T. Rowe Price Communications & Technology Fund Investors Category PRMTX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers going forward. Investors can click here to see the full list of technology funds.
Fidelity Advisor Semiconductors Class I Fund The fund seeks capital appreciation by investing primarily in common stocks. FELIX invests most of its assets in securities of companies engaged in the design and manufacture of semiconductors and semiconductor equipment of domestic and foreign issuers.
The Fidelity Advisor Semiconductors Fund Class I has three-year annualized returns of 38.3%. At the end of October 2021, FELIX held 46 issues with 25% of its assets invested in NVIDIA Corp.
Loyalty selection technology The fund aims for capital appreciation by investing the majority of its net assets in common stocks of domestic and foreign companies that will significantly benefit from technological advances and improvements. FSPTX advisors use fundamental analysis, i.e. financial condition, industry standing, and market and economic conditions to select investments.
Fidelity Select Technology Portfolio has three-year annualized returns of 30.9%. FSPTX has an expense ratio of 0.69% compared to the category average of 1.05%.
T. Rowe Price Communications & Technology Fund Investors Category seeks long-term capital growth by investing a significant portion of its net assets and borrowings, if any, in securities of US or non-US technology and communications companies. PRMTX uses both growth and value approaches to investing.
T. Rowe Price Communications & Technology Fund Investor Class Fund has three-year annualized returns of 18.5%. James Stillwagon has been PRMTX’s fund manager since November 2019.
To see the Zacks ranking and past performance of all technology mutual funds, investors can click here to view the full list of technology funds.
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