Technology mutual funds are ideal for investors looking for long-term growth and impressive returns. Improvements in industry fundamentals and emerging technologies such as AI, ML, robotics, and data science are key catalysts for 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 Software and IT Services Portfolio FSCSX, Fidelity Select Tech Hardware FDCPX and Matthews Asia Innovators Investor MATFX. 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 Software and IT Services Portfolio The Fund invests most of its net assets in the securities of domestic and foreign companies primarily engaged in the research, design, production and distribution of products or processes related to software or information-based services. FSCSX Advisors use fundamental analytical factors such as each issuer’s financial condition, industry standing, and market and economic conditions to make investment decisions.
The Fidelity Select Software & IT Services Portfolio Fund has a five-year annualized return of 19.6%. As of the end of November 2023, FSCSX had invested 12.40% of its assets in Samsung Electronics.
Fidelity Select Tech Hardware The Fund invests most of its net assets in the securities of domestic and foreign companies primarily engaged in the development, manufacture and sale of high-tech hardware. FDCPX Advisors use fundamental analysis factors, such as each issuer’s financial condition, industry standing, and market and economic conditions, to make investment decisions.
The Fidelity Select Tech Hardware Fund has a five-year annualized return of 17.4%. FDCPX’s expense ratio is 0.73%, while the category average is 1.05%.
Matthews Asia Innovators Investor The Fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of companies located in Asia. MATFX Advisors invest in stocks that they believe are innovators in their products, services, processes, business models, management, use of technology, or approach to market creation, expansion, or services.
Matthews Asia Innovators Investor Fund has a five-year annualized return of 7.2%. Mr. Inbok Song has been the fund manager of MATFX since April 2023.
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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