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Tickers in this Article: INPSX, RYSAX, WFSTX, MTCAX, PRGTX
Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.

Below we will share with you the 5 best performing technology mutual funds year to date. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Internet UltraSector Service

#1 Strong Buy

15.73%

Rydex Electronics

#1 Strong Buy

11.72%

Wells Fargo Advantage Specialized Technology A

#1 Strong Buy

6.48%

MFS Technology A

#1 Strong Buy

4.19%

T. Rowe Price Global Technology

#1 Strong Buy

3.65%

ProFunds Internet UltraSector Service (INPSX) invests in securities and derivatives with an objective to generate return investment results which are 150% of the daily performance of the Dow Jones Internet Composite Index. This technology mutual fund is non-diversified and returned 20.57% in the last three year period.

The fund manager is Hratch Najarian and he has managed this technology mutual fund since 2011.

Rydex Electronics (RYSAX) seeks capital growth. The fund invests a large share of its assets in equity securities of domestic electronics companies as well as derivatives. The fund may invest substantially in small and mid-sized firms. It may also acquire ADRs. The technology mutual fund is non-diversified and has a three year annualized return of -0.88%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.86% compared to a category average of 1.57%.

Wells Fargo Advantage Specialized Technology A (WFSTX) invests the majority of its assets in technology companies. It may utilize at most half of its assets to purchase foreign common stocks and ADRs. A maximum of 25% of its assets can be invested in any single country, Japan being the only exception. The technology mutual fund has a three year annualized return of 7.90%.

As of April 2013, this technology mutual fund held 76 issues, with 9.30% of its total assets invested in Microsoft Corporation.

MFS Technology A (MTCAX) invests a large share of its assets in domestic and foreign equity securities of technology companies. Those companies which stand to gain from technological development are selected for investment regardless of their sizes. The technology mutual fund has a three year annualized return of 10.61%.

The fund manager is Matthew Sabel and he has managed this technology mutual fund since 2011.

T. Rowe Price Global Technology (PRGTX) invests the majority of its assets in companies which expect to derive a large proportion of their revenues from the development and application of technology. The fund invests at least 30% of its assets in both mature and developing foreign markets. The technology mutual fund has a three year annualized return of 12.07%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.97% compared to a category average of 1.57%.

To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

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