Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies, such as artificial intelligence, machine learning, robotics and data science, are key catalysts for 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 technology mutual funds, viz., Fidelity Advisor Semiconductors Fund FELIX, Fidelity Select Technology Portfolio FSPTX and Janus Henderson Global Technology And Innovation Fund JNGTX. Each has 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 technology funds.
Fidelity Advisor Semiconductors Fund invests most of its net assets in securities of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FELIX advisors use fundamental analysis factors such as each issuer’s financial condition, industry position, as well as market and economic conditions to make an investment decision.
Fidelity Advisor Semiconductors Fund has three-year annualized returns of 22.1%. As of the end of October 2024, FELIX held 37 issues, with 24.5% of its assets invested in NVIDIA Corporation.
Fidelity Select Technology Portfolio fund invests primarily in common stocks of domestic and foreign companiesthat offer, use, or develop products, processes or services that will benefit significantly from technology advancements. FSPTX uses fundamental analysis techniques like financial condition, industry position, as well as market and economic conditions to select investments.
Fidelity Select Technology Portfolio fund has three-year annualized returns of 15%. FSPTXhas an expense ratio of 0.62%.
Janus Henderson Global Technology And Innovation Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies that its portfolio managers believe will benefit from advances or improvements in technology. JGLTX advisors choose to invest in companies based on their growth potential.
Janus Henderson Global Technology And Innovation Fund has three-year annualized returns of 14.1%. Denny Fish has been the fund manager of JGLTX since January 2016.