There’s no doubt that throughout the first nine-plus months of 2010 the market has seen more than its fair share of volatility. There’s been plenty of gyration along the way, yet when you take a look at some of the hottest sectors so far this year, you find that there are indeed some very solid winners.

Energy stocks have done well this year, as have health and biotech stocks, Internet and telecom stocks, real estate stocks and technology stocks. These five sectors have many different mutual funds tied to their respective fortunes, and investors have a variety of ways to take advantage of the trend higher in each sector.

However, there can be only one mutual fund alpha dog from each respective sector, so let’s give these funds their just do now.

Energy

When it comes to energy sector funds, the best fund so far in 2010 (as of 10/11/10) is the Franklin Natural Resources Adv (MUTF: FNRAX). A Bloomberg screen of funds focused on the energy sector showed FNRAX with a group-leading 12% total return year to date. This Franklin fund holds a lot of oil and oil services stocks, including Occidental Petroleum Corporation (NYSE: OXY), Halliburton Company (NYSE: HAL) and Devon Energy Corporation (NYSE: DVN). If you’re looking for a top-notch energy and natural resources fund, then certainly FNRAX belongs on your watch list.

Franklin Natural Resources-Adv (FNRAX): 12.00%
Franklin Natural Resources-A (FRNRX): 11.76%
USGI Global Resources Fund (PSPFX): 11.75%
Prudential Jennison Natural Resources-Z (PNRZX): 11.31%
Prudential Jennison Natural Resources-A (PGNAX): 11.07%

Above returns are total return YTD as of 10/11/10.

Health & Biotech

The health and biotech sector is one replete with both big profit potential and often times some hefty disappointment. Managing this tricky sector mix best so far in 2010 is the Fidelity Select Pharmaceuticals (MUTF: FPHAX). This fund’s 11.61% year-to-date total return puts it atop the list in this Bloomberg fund objective category. This fund holds big-pharma and health care stocks such as Merck & Co., Inc. (NYSE: MRK), Pfizer Inc. (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ). If you’re looking for healthy returns, FPHAX is a great fund to check out.

Fidelity Select Pharmaceuticals (FPHAX): 11.61%
Eaton Vance Worldwide Health Science-A (ETHSX): 10.83%
Prudential Jennison Health Sciences-Z (PHSZX): 10.77%
Prudential Jennison Health Sciences-A (PHLAX): 10.48%
Eaton Vance Worldwide Health Sciences-B (EMHSX): 10.23%

Above returns are total return YTD as of 10/11/10.

Internet & Telecom

Internet and telecom stocks have been some one of the hottest investment sectors this year, and there were a number of outstanding fund performers in the space. Of course, there can be only one winner, and in this sector that fund is the DWS Communications A (MUTF: TISHX) with a 19.65% year-to-date gain. The fund grabbed much of its gains from holding stocks such as Sprint Nextel Corporation (NYSE: S), Qwest Communications International Inc. (NYSE: Q) and American Tower Corporation (NYSE: AMT). Picking winning stocks in this sector isn’t the easiest thing for individual investors to do. That’s why a fund like TISHX is a good choice for those who want to get in on the Internet and telecom sector’s gains.

DWS Communications Fund-A (TISHX): 19.65%
Jacob Internet Fund (JAMFX): 19.55%
T. Rowe Price Media & Telecom (PRMTX): 15.82%
Fidelity Select Communications Equipment (FSDCX): 13.92%
Kinetics Internet Fund-No Load (WWWFX): 13.14%

Above returns are total return YTD as of 10/11/10.

Real Estate

You would think that with all of the woes making the headlines in real estate that the stocks tied to this sector would all be down. But that’s far from the case in 2010, as the real estate sector has outshined most Bloomberg fund objective categories. The top-performing mutual fund in this category is the Forward Strategic Realty A (MUTF: KSRAX) with a 26.87% year-to-date return. This fund holds some of the best real estate investment trusts (REITs) available today, including Simon Property Group, Inc (NYSE: SPG), Vornado Realty Trust (NYSE: VNO) and Equity Residential (NYSE: EQR). Sure, residential real estate prices are singing the blues, but REITs and their corresponding mutual funds are rockin’ and rollin’ in 2010.

Forward Strategic Realty-A (KSRAX): 26.87%
Neuberger Berman Real Estate Fund-Tr (NBRFX): 25.64%
Spirit of America Real Estate-A (SOAAX): 25.06%
TIAA-CREF Real Estate Sec Instl (TIREX): 24.67%
First American Real Estate-Y (FARCX): 24.66%

Above returns are total return YTD as of 10/11/10.

Technology

It seems like tech is a sector that’s either smoking hot, or dead cold to the touch depending on the mood of the investing public. Indeed, there never seems to be a dull moment in this sector, with winners winning big and losers getting slaughtered. So far this year, the winners have won big in the RS Technology A (MUTF: RSIFX), the alpha dog of this mutual fund sector with an 18.94% surge. This fund holds stocks such as Apple Inc. (NASDAQ: AAPL), EMC Corporation (NYSE: EMC) and Entropic Communications, Inc. (NASDAQ: ENTR), along with a great mix of other big- and small-cap tech stocks. Tech investors would be hard-pressed to find a better managed fund than RS Technology, and the fund’s performance this year speaks directly to that assessment.

RS Technology Fund-A (RSIFX): 18.94%
Firsthand Technology Opportunity (TEFQX): 17.95%
Dreyfus Technology Growth-A (DTGRX): 15.63%
Matthews Asia Science & Technology Fund (MATFX): 14.84%
Dreyfus Technology Growth-C (DTGCX): 14.79%

Above returns are total return YTD as of 10/11/10.