Technology mutual funds are ideal for investors who seek long-term growth and impressive returns. This sector has a better earnings performance than other sectors, thanks to greater demand for technology and innovation. Improving industry fundamentals and emerging technologies such as artificial intelligence, machine learning, robotics and data science are the key catalysts to the sector’s growth.

In addition, a majority of funds investing in securities from the technology sector take a growth-oriented approach that includes focusing on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software companies. Social media and Internet companies are now part of the technology landscape.

Below we share with you three top-ranked technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future.

BlackRock Technology Opportunities Fund Investor A Shares (BGSAX - Free Report) aims for long-term capital appreciation. The fund invests the majority of its assets in equity securities of U.S. and foreign companies across all market capitalizations that have fast and sustainable growth potential from the development, advancement, and implementation of science and technology. BGSAX has three-year annualized returns of 23.2%.

Tony Kim is the fund manager of BGSAX since 2013.

DWS Science and Technology Fund - Class A (KTCAX - Free Report) aims for capital growth that can be achieved by investing in technology companies. Therefore, the fund invests the majority of its assets in common stocks of companies that operate in the technology sector. The fund mostly aims to invest in companies that develop and implement scientific and technological innovation, which can offer high levels of growth. KTCAX has three-year annualized returns of 19.4%.

KTCAX has an expense ratio of 0.93% as compared to the category average of 1.30%.

Fidelity Select Software and IT Services Portfolio (FSCSX - Free Report) fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. FSCSX has three-year annualized returns of 21.6%.

As of August 2019, FSCSX held 69 issues with 24.96% of its assets invested in Microsoft Corp.