Technology mutual funds are ideal for investors looking for long-term growth and impressive returns. Improvements in industry fundamentals and emerging technologies such as artificial intelligence, machine learning, robotics, and data science are key drivers of growth in this sector.
Additionally, most funds that invest in technology sector securities take a growth-oriented approach that focuses on companies with strong fundamentals and relatively good investment prospects. Technology has become much more than just hardware and software. Social media and internet companies are now part of technology.
Here are three technology investment trusts. Fidelity Select Tech Hardware Port Fund FDCPX, T. Rowe Price Science and Technology Foundation PRSCX and DWS Science and Technology Fund KTCAX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here for a complete list of technology funds.
Fidelity Select Tech Hardware Port Fund We aim for capital appreciation. FDCPX invests most of its assets primarily in the research, design, development, manufacture, or sale of products, processes, or services related to currently available or experimental hardware technologies within the computer industry. Invests in common stock of companies.
The Fidelity Select Tech Hardware Port Fund has a three-year annualized return of 10.5%. As of the end of May 2023, FDCPX holds 31 stocks, with 12.4% of its assets invested in Samsung Electronics.
T. Rowe Price Science and Technology Foundation seeks to grow long-term capital by investing in the common stock of companies that T. Rowe Price expects to benefit from the development, advancement and exploitation of science and technology. PRSCX Advisors invest in foreign stocks, futures, and options.
The T. Rowe Price Science and Technology Foundation has a three-year annualized return of 4.4%. PRSCX’s expense ratio is 0.82%, while the category average is 1.05%.
DWS Science and Technology Fund seeks to increase its capital by investing most of its assets in common stocks of U.S. companies in the technology sector. Based on thorough research, KTCAX advisors select a diverse portfolio of technology companies with solid and sustainable revenue growth, large and growing markets, leading products and services, and strong balance sheets. .
DWS Science and Technology Fund has a three-year annualized return of 6.5%. Sebastian P. Werner has been KTCAX’s fund manager since November 2017.
To see the Zacks Rank and past performance of all Technology Mutual Funds, investors can click here for the complete list of Technology Funds.
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