Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics, and data science are the key catalysts to the sector’s growth.
In addition, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. Technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.
Below, we share with you three top-ranked Technology mutual funds, namely Fidelity Select Semiconductors (FSELX – Free Report) , Fidelity Select Technology (FSPTX – Free Report) and Fidelity Advisor Technology (FATEX – Free Report) . 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 to see the complete list of funds.
Fidelity Select Semiconductors invests in companies engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX uses fundamental analysis like financial condition, industry position and market conditions to select investments.
Fidelity Select Semiconductors has three-year annualized returns of 23.4%. As of August 2023, FSELX held 40 issues, with 24.8% of its assets invested in Nvidia.
Fidelity Select Technology aims for capital appreciation by investing the majority of its net assets in common stocks of domestic and foreign companies that benefit significantly from technological advances and improvement. FSPTX uses fundamental analysis, like financial condition, industry position and market conditions to select investments.
Fidelity Select Technology has three-year annualized returns of 7.2%. FSPTX has an expense ratio of 0.68% compared with the category average of 1.05%.
Fidelity Advisor Technology invests most of its net assets in common stocks of foreign and domestic companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. FATEX advisors choose to invest in stocks based on the fundamental analysis of factors such as each issuer’s financial condition, industry position, as well as market and economic conditions.
Fidelity Advisor Technology has three-year annualized returns of 8.7%. Adam Benjamin has been one of the fund managers of FATEX since 2020.
To view the Zacks Rank and the past performance of all Technology mutual funds, investors can click here to see the complete list of Technology mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks Reveals ChatGPT “Sleeper” Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other “must buys.” Plus more.
