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5 Technology Mutual Funds to Add to Your Portfolio

Zacks Equity Research

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 fairly longer investment horizon should park their savings in these funds.

Below we will share with you 5 potential technology mutual funds. Each has earned a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.

DWS Technology A (KTCAX) seeks capital appreciation. It invests heavily in companies related to the technology sector. The fund primarily invests in domestic companies. A maximum of 35% of its assets may be utilized to purchase foreign securities. It may also invest in IPOs. This fund has a three-year annualized return of 13.9%.

This fund has an expense ratio of 1.01% as compared to category average of 1.49%.

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Red Oak Technology Select (ROGSX) invests majority of its assets in companies related to the technology industry. It mainly focuses on acquiring stocks of domestic companies. However, it may also invest in foreign firms and American Depositary Receipts. This fund has a three-year annualized return of 18.8%.

Mark W. Oelschlager is the fund manager and has managed the fund since 2006.

Columbia Seligman Communications & Information A (SLMCX) seeks capital growth over the long run. The fund invests a lion’s share of its assets in companies engaged in operations related to communications and information sector. It may also invest in sector such as information technology and media. It invests a maximum of 25% of its assets in non U.S. companies. This non-diversified fund has a three-year annualized return of 14.7%.

As of September 2014, this fund held 70 issues with 9.03% invested in Synopsys Inc.

Fidelity Select Computers Portfolio (FDCPX) invests a large portion of its assets in companies primarily involved in operations such as manufacturing, development and distribution of technology products, and providing services in computer sector. The fund invests in both U.S. and non U.S. firms. It considers factors such as financial strength and economic condition to invest in companies. This non-diversified fund has a three-year annualized return of 16.1%.

This fund has an expense ratio of 0.82% as compared to category average of 1.49%.

Columbia Global Technology Growth A (CTCAX) seeks capital growth. The fund invests major share of its assets in companies from technology sector that get benefited from advancement and development of technology. It invests a minimum of 40% of its assets in foreign companies. It may invest in companies irrespective of their market capitalizations. This non-diversified fund has a three-year annualized return of 20.6%.

As of September 2014, this fund held 117 issues with 5.13% invested in Apple Inc.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.


Read the analyst report on KTCAX

Read the analyst report on ROGSX

Read the analyst report on SLMCX

Read the analyst report on FDCPX

Read the analyst report on CTCAX


View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research