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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, the 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. 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. 

Putnam Global Technology Fund Class A (PGTAX Quick Quote PGTAX - Free Report) aims for capital appreciation. This non-diversified fund invests primarily in common stocks of large and midsize companies worldwide. It invests a majority of its assets in securities of companies in the technology industries. PGTAX has returned nearly 31.4% in the past three years.

As of the end of March 2021, PGTAX held 96 issues with 11.78% of its assets invested in Microsoft Corp.

Fidelity Select Software & IT Services Portfolio (FSCSX Quick Quote FSCSX - Free Report) aims for capital appreciation. The non-diversified fund invests the majority of its assets in common stocks of companies engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. FSCSX has three-year annualized returns of 26.6%.

Ali Khan is one of the fund managers of FSCSX since 2014.

Fidelity Select Semiconductors Portfolio (FSELX Quick Quote FSELX - Free Report) fund aims for capital appreciation. The non-diversified fund invests the majority of assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX has three-year annualized returns of 30.1%.

FSELX has an expense ratio of 0.72% compared to the category average of 1.05%.