Tech Stocks for Retirement: Fidelity Select Software and IT Services Portfolio (FSCSX)
Expense Ratio: 0.76%
Minimum Investment: $2,500
The Fidelity Select Software & IT Services Portfolio (MUTF:FSCSX) mutual fund focuses on tech stocks that are just minting cash flows.
FSCSX is actively managed and focuses its attention on all the software and outsourcing firms located in the tech sector. Software firms typically have some of the fattest margins, as their only costs are really engineers and programmers. As a result, they have tremendous cash flows. The fund currently holds 54 different software giants, including MSFT and GOOG. And it has distributed more than $8 in capital gains distributions to shareholders in the past year.
As for returns, FSCSX has been top notch. Over the last ten years, the mutual fund has managed to return over 13% annually. That has trounced the S&P 500 and broad tech stock funds. The secret has been its focus on following the sector’s biggest cash piles.
Expenses for FSCSX run at 0.76% and the minimum for investment is $2,500.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.