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Even if one cannot afford these small robots, AI techs like digital assistants have now entered every other household. These AI-based digital assistants offer home automation, allowing one to control a house’s thermostat, lights, and other devices along with basic features like message dictation, Internet searches, alarms, scheduling, reminders, calculation, and music playbacks. AI is also being constantly used in the development of coronavirus vaccine as it helps in reading the genetic structure of the virus faster and help scientists to design a cure quicker.

With constant funding in both big-tech AI companies and startups, this technology has a brighter future than anticipated. In the first quarter of this year, nearly 500 AI startups across 42 countries have raised more than $8.4 billion, per a CB Insights report.

Our Top 4 Fund Choices

Given the strong prospects of AI, we have shortlisted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their 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.

Janus Henderson Global Technology and Innovation Fund Class T (JAGTX - Free Report) aims for long-term capital growth. The fund invests majority of its assets in securities of companies that the fund managers believe will significantly benefit from advances in technology. JAGTX has returned 24.6% and 25.3% in the past three and five years, respectively.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years.

JAGTX has an annual expense ratio of 0.93%, which is below the category average of 1.25%. The fund has a minimum initial investment of $2,500. Some of the fund’s top AI stock holdings are Microsoft, Apple, and Amazon.

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. FSPTX is a non-diversified fund that has returned 22.9% and 25.6% in the past three and five years, respectively.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. 

FSPTX has an annual expense ratio of 0.71%, which is below the category average of 1.25%. The fund has no minimum initial investment. Some of the fund’s top AI stock holdings are Nvidia, Microsoft, and Apple.

T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. The fund invests most of its assets in the common stocks of companies that its managers expect will generate the majority of their revenues from the development, advancement, and use of technology. PRGTX is a non-diversified fund and has returned 20.5% and 23.1% in the past three and five years, respectively.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years.

PRGTX has an annual expense ratio of 0.88%, which is below the category average of 1.25%. The fund has a minimum initial investment of $2,500. Some of the fund’s top AI stock holdings are Google, Micron Technology, and Intuit.

Fidelity Select Semiconductors Portfolio (FSELX - Free Report) fund aims for capital appreciation. The non-diversified fund invests the majority of its assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX has returned 20.5% and 25.4% in the past three and five years, respectively.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years.

FSELX has an annual expense ratio of 0.72%, which is below the category average of 1.25%. The fund has no minimum initial investment. Some of the fund’s top AI stock holdings are Nvidia, Intel, and Micron Technology.