More often than not the technology sector is likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and a fairly longer investment horizon should park their savings in these funds.

Below we will share with you 4 buy-rated technology mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.

USAA Science & Technology (USSCX – MF report) seeks capital growth over the long run. USSCX invests a lion’s share of its assets in equity securities of companies that are believed to gain from technological development and advancement. USSCX may invest a maximum of half of its assets in securities of companies located in foreign lands. The USAA Science & Technology fund has a three-year annualized return of 20%.

USSCX has an expense ratio of 1.24% as compared to category average of 1.47%.

Northern Technology (NTCHX – MF report) invests a major portion of its assets in securities of companies primarily involved in technology sector. NTCHX invests a minimum of one-fourth share of its assets in securities of companies engaged in manufacturing and selling of computer hardware or software and peripheral products. NTCHX invests in securities of companies irrespective of their market capitalizations. NTCHX may also participate in IPO markets. The Northern Technology fund has a three-year annualized return of 12.1%.