4 Funds To Tap Transformational Technologies Growth

4 Tech Fund Choices

Transformational technologies play a crucial role in the fourth industrial revolution and companies investing or providing such technologies are poised to grow. Hence, we have shortlisted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and have significant exposure to transformational technology companies.

Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform peers in the future.

The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds.

Fidelity Select Technology Portfolio (FSPTX - Free Report) fund aims for capital appreciation. The fund invests primarily in equity securities, especially common stocks of companies that are engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, this non-diversified fund that has returned 31.4% and 31.9% in the past three and five years, respectively.

FSPTX has an annual expense ratio of 0.69% versus the category average of 1.05%.

Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) aims for capital appreciation. The non-diversified fund invests majority of 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.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSCSX has returned 27.8% and 28.1% over the past three and five-year period, respectively.

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