Key Takeaways
- Technology mutual funds offer long-term growth and impressive returns, driven by emerging technologies like artificial intelligence and machine learning.
- Top-ranked technology mutual funds include Fidelity Select Semiconductors, T. Rowe Price Science & Tech, and Janus Henderson Glb Tech and Innovt.
- These funds have earned a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers in the future.
- Investors can consider these funds for their portfolios, given their strong three-year annualized returns and growth-oriented approach.
Introduction to Technology Mutual Funds
Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. The technology sector has experienced significant growth in recent years, driven by improving industry fundamentals and emerging technologies such as artificial intelligence, machine learning, robotics, and data science. These funds typically take a growth-oriented approach, focusing on companies with strong fundamentals and a relatively better investment prospect. The technology sector has also expanded to include social media and internet companies, making it a broader and more diverse industry.
Top-Ranked Technology Mutual Funds
There are several top-ranked technology mutual funds that investors can consider for their portfolios. Three of these funds are Fidelity Select Semiconductors (FSELX), T. Rowe Price Science & Tech (PRSCX), and Janus Henderson Glb Tech and Innovt (JNGTX). Each of these funds has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. These funds have a strong track record of performance, with Fidelity Select Semiconductors having three-year annualized returns of 48%, T. Rowe Price Science & Tech having three-year annualized returns of 36.1%, and Janus Henderson Glb Tech and Innovt having three-year annualized returns of 33.2%.
Fidelity Select Semiconductors Fund
The Fidelity Select Semiconductors fund invests most of its net assets in common stocks of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. The fund’s investment approach is based on fundamental analysis factors such as each issuer’s financial condition and industry position, and market and economic conditions. Adam Benjamin has been one of the fund managers of FSELX since 2020, and the fund has a strong track record of performance. With its focus on the semiconductor industry, this fund is well-positioned to benefit from the growing demand for technology and electronics.
T. Rowe Price Science & Tech Fund
The T. Rowe Price Science & Tech fund invests most of its assets, along with borrowings, if any, in common stocks of companies that are expected to benefit from the development and use of science and technology. The fund’s advisors also invest in foreign issuers, including those from emerging markets. The fund has an expense ratio of 0.81%, which is relatively low compared to other technology mutual funds. With its diversified portfolio and experienced management team, the T. Rowe Price Science & Tech fund is a solid choice for investors looking to gain exposure to the technology sector.
Janus Henderson Glb Tech and Innovt Fund
The Janus Henderson Glb Tech and Innovt fund invests its net assets in securities of companies poised to benefit from technological advancements. The fund’s advisors consider environmental, social, and governance factors in their investment approach, which includes a bottom-up analysis of individual companies. As of June 2024, the fund held 52 issues with 14.3% of its assets invested in NVIDIA Corp. This fund is well-positioned to benefit from the growing trend of technological innovation and disruption, and its focus on environmental, social, and governance factors makes it a appealing choice for socially responsible investors.
Conclusion
In conclusion, technology mutual funds offer a compelling investment opportunity for investors seeking long-term growth and impressive returns. With their growth-oriented approach and focus on emerging technologies, these funds are well-positioned to benefit from the growing demand for technology and electronics. The three top-ranked technology mutual funds discussed in this article, Fidelity Select Semiconductors, T. Rowe Price Science & Tech, and Janus Henderson Glb Tech and Innovt, are solid choices for investors looking to gain exposure to the technology sector. By considering these funds and their strong track record of performance, investors can make informed decisions about their investment portfolios and potentially achieve their long-term financial goals.
