4 Strong Buy Technology Mutual Funds
More often than not, the technology sector reports above par earnings than other sectors fueled by the demand for technology and innovation. However, technology stocks are considered to be more volatile than other sector stocks in the short run. In order to minimize this short-term volatility, almost all tech funds adopt a growth management style with focus on strong fundamentals and a relatively broader 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 four buy-rated technology mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future. Fidelity Advisor Electronics A (MUTF: FELAX ) seeks capital appreciation. FELAX invests a large portion of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies. FELAX uses a fundamental analysis to select companies for investment purposes. The Fidelity Advisor Electronics A is non-diversified and has a three-year annualized return of 16.4%. FELAX has an expense ratio of 1.27% as compared to the category average of 1.42%. Putnam Global Technology A (MUTF: PGTAX ) invests in common stocks of both mid and large-sized companies across the world. PGTAX invests a major portion of its assets in securities of companies in the technology industries. The Putnam Global Technology A is non-diversified and has a three-year annualized return of 13.1%. As of March 2016, PGTAX held 68 issues with 12.76% invested in Alphabet Inc C. Fidelity Select Software & Comp Portfolio (MUTF: FSCSX ) seeks growth of capital. FSCSX invests a major portion of its assets in companies whose primary operations are related to software or information-based services. FSCSX primarily focuses on acquiring common stocks of both domestic and foreign companies. FSCSX uses fundamental analysis to select companies for investment purposes. The Fidelity Select Software & Comp Portfolio is non-diversified and has a three-year annualized return of 14.6%. FSCSX has an expense ratio of 0.76% as compared to the category average of 1.42%. MFS Technology B (MUTF: MTCBX ) invests a large chunk of its assets in securities of companies involved in operations related to products and services that are believed to benefit from advancement and improvement of technology. MTCBX invests in securities issued throughout the globe including those from emerging markets. MFS Technology B is a non-diversified fund and has a three-year annualized return of 12.8%. Matthew D. Sabel is the fund manager since 2011. Original Post