4 Zacks Buy-Ranked Technology Mutual Funds
More often than not the technology sector is likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and a fairly longer investment horizon should park their savings in these funds. Below we will share with you 4 buy-rated technology mutual funds . Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. The USAA Science & Technology Fund (MUTF: USSCX ) seeks capital growth over the long run. USSCX invests a lion’s share of its assets in equity securities of companies that are believed to gain from technological development and advancement. USSCX may invest a maximum of half of its assets in securities of companies located in foreign lands. The USAA Science & Technology fund has a three-year annualized return of 20%. USSCX has an expense ratio of 1.24% as compared to category average of 1.47%. The Northern Technology Fund (MUTF: NTCHX ) invests a major portion of its assets in securities of companies primarily involved in technology sector. NTCHX invests a minimum of one-fourth share of its assets in securities of companies engaged in manufacturing and selling of computer hardware or software and peripheral products. NTCHX invests in securities of companies irrespective of their market capitalizations. NTCHX may also participate in IPO markets. The Northern Technology fund has a three-year annualized return of 12.1%. As of June 2015, NTCHX held 66 issues with 5.32% invested in Apple Inc (NASDAQ: AAPL ). The Fidelity Select Technology Portfolio (MUTF: FSPTX ) seeks long-term capital growth. FSPTX invests a large chunk of its assets primarily involved in manufacturing, development and distribution of products and services related to technology sector. FSPTX focuses on acquiring common stocks of companies located throughout the globe. FSPTX considers factors including financial strength and economic condition before investing in securities. The Fidelity Select Technology Portfolio is non-diversified fund and has a three-year annualized return of 11.3%. Charlie Chai is the fund manager and has managed FSPTX since 2007. The Matthews Asia Science and Technology Fund (MUTF: MATFX ) invests a majority of its assets in securities of technology companies located in Asia. According to MATFX’s advisors, companies that earn maximum share of their revenue by carrying out operations related to technology domain are considered as technology companies. MATFX primarily invests in common and preferred stocks of companies. The Matthews Asia Science and Technology Investor fund has a three-year annualized return of 11.8%. As of June 2015, MATFX held 57 issues with 9.08% invested in Baidu Inc. (NASDAQ: BIDU ). Link to the original post on Zacks.com Share this article with a colleague