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, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. 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 technology mutual funds, viz., Matthews Asia Innovators Fund MATFX, Software and IT Services Portfolio FSCSX and Allspring Discovery Innovation Fund WFSTX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of technology funds.
Matthews Asia Innovators Fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of companies located in Asia. MATFX advisors invest in stocks that they believe are innovators in their products, services, processes, business models, management, use of technology, or approach to creating, expanding or servicing their markets.
Matthews Asia Innovators Fund has three-year annualized returns of 11.1%. As of the end of September 2022, MATFX had 7.87% of its assets invested in ICICI Bank Ltd.
Software and IT Services Portfolio invests most of its net assets in securities of domestic and foreign companies that are principally engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. FSCSX advisors use fundamental analysis factors such as each issuer’s financial condition, industry position, as well as market and economic conditions to make an investment decision.
Software and IT Services Portfolio has three-year annualized returns of 8.0%. FSCSX has an expense ratio of 0.70% compared with the category average of 1.05%.
Allspring Discovery Innovation Fund invests most of its assets in equity securities of domestic and foreign (including emerging market) companies directly or through ADRs and similar instruments in the investment theme of innovation. WFSTX manager invests primarily in companies that they believe offer the potential for capital growth irrespective of their market capitalization.
Allspring Discovery Innovation Fund has three-year annualized returns of 5.4%. Michael A. Seidenberg has been the fund manager of WFSTX since August 2018.
To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.
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