In the current market scenario, mutual funds have become an attractive investment option for most retail investors. As technology stocks dominate the equity markets, technology mutual funds can be an excellent choice to diversify your portfolio. In this post, we will discuss five technology mutual funds to watch in 2021.
1. Fidelity Select Technology Portfolio (FSPTX):
FSPTX is one of the oldest and most popular mutual funds in the technology sector. It invests in companies engaged in research, development, and distribution of technology products and services. With a total net asset value of over $10 billion, the fund has a 0.71% expense ratio and an average annual return of 24.5% over the past three years. It has a diversified portfolio with holdings in Apple, Microsoft, and Alphabet.
2. Vanguard Information Technology Index Fund (VITAX):
As the name suggests, VITAX invests in technology companies listed on the S&P 500 Index. With a low expense ratio of 0.10%, it has a total net asset value of over $28 billion. Its top holdings include Apple, Microsoft, and Amazon. It has a 10-year annualized return rate of 19.11%, making it an attractive option for long-term investors.
3. T. Rowe Price Global Technology Fund (PRGTX):
PRGTX invests in companies that drive technological change globally. Its portfolio is diversified across healthcare, consumer technology, and software companies. With a total net asset value of over $22 billion, the fund has an expense ratio of 0.87% and a 10-year annualized return rate of 20.12%. Its top holdings include Apple, Microsoft, and Alibaba.
4. BlackRock Science and Technology Opportunities Fund (BGSAX):
BGSAX invests in US-based technology companies and focuses on disruptive technologies. With a total net asset value of over $14 billion, the fund has an expense ratio of 1.16% and a five-year annualized return rate of 23.56%. Its top holdings include Tesla, Amazon, and Alphabet.
5. Fidelity Advisor Technology Fund (FADTX):
FADTX invests in companies that leverage technology to create innovative products and services across various industries. With a total net asset value of over $4 billion, the fund has an expense ratio of 1.08% and an average annual return of 26.3% over the past three years. Its portfolio is diversified across healthcare, financial services, and consumer technology companies. Its top holdings include Shopify, Microsoft, and Amazon.
In conclusion, technology mutual funds can be an excellent option for investors looking to diversify their portfolios. The above-mentioned funds are some of the best in the market, providing investors with exposure to the fast-growing technology sector. As with any investment, it’s essential to do your research and consult with a financial advisor before you make any decisions.
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