Technology has increasingly become an indispensible part of our daily lives and the future prospects of this sector only seem brighter. However, the boom of tech funds in the late nineties and their subsequent downfall during the decline that followed has invoked a certain degree of skepticism even among those bullish on this category. But for investors seeking aggressive growth over the long term, investing in funds that focus on technology and innovation could be a prudent option in times to come.

Below we will share with you 5 top rated technology mutual funds. Each has earned a Zacks #1 Rank (Strong 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.

HighMark NYSE ArcaTech 100 Index A (PPTIX) seeks capital appreciation. The fund invests in nearly all of the securities which make up the NYSE Arca Tech 100 Index in nearly the same proportion. A minimum of 90% of its assets are invested in securities included in the index. The technology mutual fund has a five year annualized return of 4.81%.

The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.08% compared to a category average of 1.60%.

Waddell & Reed Science & Technology A (UNSCX) invests the majority of its assets in science and technology companies. The fund focuses on investing in mid and small-cap companies but may also invest in larger firms. The technology mutual fund has a five year annualized return of 5.25%.

The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.

Vanguard Information Technology Index (VITAX) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index by utilizing an indexing -investment approach. The fund invests almost all its assets in equity securities which are included in the index. The technology mutual fund has a five year annualized return of 4.25%.

The technology mutual fund has an expense ratio of 0.19% compared to a category average of 1.60%.

USAA Science & Technology (USSCX) invests a large share of its assets in companies which expect to gain from scientific and technological advances. A maximum of half of its assets may be utilized to purchase foreign securities from either domestic or foreign markets. The technology mutual fund has a five year annualized return of 2.13%.

As of April 2012, this technology mutual fund held 146 issues, with 9.21% of its total assets invested in Apple, Inc.

Fidelity Select Software and Computer Services (FSCSX) seeks capital appreciation. The fund invests the majority of its assets in companies whose principal operations are related to software or information-based services. The fund may purchase foreign securities and invest a heavily in a single issuer. The technology mutual fund has a five year annualized return of 8.11%.

The fund manager is Brian Lempel and he has managed this technology mutual fund since 2009.

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 at http://www.zacks.com/funds.


View All Zacks #1 Ranked Mutual Funds
 
(FSCSX): ETF Research Reports
 
(PPTIX): ETF Research Reports
 
(UNSCX): ETF Research Reports
 
(USSCX): ETF Research Reports
 
(VITAX): ETF Research Reports
 
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