3 Top-Ranked Technology Mutual Funds to Buy for Outstanding Returns
As technology continues to evolve at a rapid pace, it remains a key sector for investors seeking long-term growth and impressive financial returns. With catalysts such as artificial intelligence, machine learning, robotics, and data science driving innovation, technology mutual funds have become an attractive option for those looking to capitalize on these advancements. Notably, the scope of technology now extends beyond traditional hardware and software to include social media and Internet companies, broadening the investment landscape.
Here, we highlight three top-ranked technology mutual funds that stand out for their strong fundamentals, robust performance, and growth potential:
1. Fidelity Select Semiconductors Portfolio (FSELX)
The Fidelity Select Semiconductors Portfolio focuses primarily on investing in companies involved in the design, manufacture, or sale of semiconductors and related equipment. Fund managers base their investment decisions on solid fundamental analysis, considering factors like financial health, industry positioning, and broader economic prospects.
- Performance: This fund boasts a remarkable three-year annualized return of 38.3%.
- Holdings: As of May 2025, FSELX held 43 issues, with a significant 24.7% allocation in NVIDIA Corporation, a leader in the semiconductor industry.
- Investment Approach: FSELX targets domestic and international companies, combining growth with strong sector fundamentals.
2. T. Rowe Price Science And Technology Fund (PRSCX)
The T. Rowe Price Science And Technology Fund invests in common stocks of companies expected to benefit from innovations in science and technology. The fund extends its reach globally, including emerging market companies that show promising growth due to technological advancements.
- Performance: PRSCX has delivered a solid three-year annualized return of 27.1%.
- Expense Ratio: The fund’s expense ratio is competitive at 0.79%.
- Investment Scope: It includes a diversified mix of domestic and foreign issuers, aiming to capture broad sector growth opportunities.
3. Goldman Sachs Technology Tollkeeper Fund (GITAX)
Goldman Sachs Technology Tollkeeper Fund focuses on equity securities of technology companies positioned to benefit from technological improvements and advances. The fund takes a global perspective, investing in both domestic and foreign companies to maximize growth potential.
- Performance: GITAX shows a respectable three-year annualized return of 23.8%.
- Management: Sung Cho has been managing the fund since January 2018, bringing expertise to its strategic direction.
- Investment Philosophy: The fund emphasizes long-term growth by targeting technology companies undergoing significant innovation.
Why Consider Technology Mutual Funds?
Technology mutual funds typically follow a growth-oriented strategy, investing in companies with strong fundamentals and promising future prospects. The sector’s diversification now includes emerging technologies and Internet-based services, making these funds appealing for investors aiming to stay ahead of market trends.
Staying Informed and Making the Right Choice
Investors eager to explore more technology mutual funds with strong potential can access detailed rankings and performance data through established investment research platforms. For timely updates, insights, and mutual fund analyses, subscription services like the Zacks Fund Newsletter offer valuable weekly briefings.
Before investing, it is crucial to review fund-specific information, including expense ratios, holdings, and historical performance, to ensure alignment with your financial goals and risk tolerance.
Disclosure: The information presented is based on data as of mid-2025 and is not investment advice. Investors should perform their own due diligence or consult a financial advisor before making investment decisions.
For a comprehensive list of top technology mutual funds and their Zacks Mutual Fund Ranks, visit the corresponding research websites.
This article originally appeared on Zacks Investment Research.
