- Telecommunication funds can be a good choice for many investors
- A telecommunications mutual fund invests mainly in equity securities from telecommunication companies
- The best no load funds have low expenses and no 12b-1 marketing fees
What are telecommunication funds? These are mutual funds which invest mainly in the stock of telecommunication companies. These are companies which develop, manufacture, or sell equipment and services related to telecommunications. This can include phone service companies, and this includes land, Internet, and cellular phone service, as well as fiber optic networks and paging companies and services. The telecommunications sector has both advantages and disadvantages, because these investments offer great returns but also come with higher risks, in part due to the volatility of this market. Communication changes and the advancement of different technologies means telecommunications are constantly evolving, and this is what helps these no load mutual funds perform well at times. Some experts compare telecommunication funds with the general market, and these funds may or may not cause a diversification risk and a bigger chance of market losses to your investment portfolio, depending on the other investments held. That is because a telecommunications mutual fund does not have a diversified portfolio, instead the portfolio is highly weighted in the telecommunications market. This can lead to bigger risks, because if the telecommunications sector starts doing poorly the fund will usually do poorly at that time as well.
One of the best no load funds when it comes to telecommunications is the Fidelity Select Wireless Fund, which has the trading symbol FWRLX. With over three hundred million dollars in net assets for the funds, and the trusted Fidelity name, this true no load fund is one of the telecommunication funds that should be considered for any investor who wants to get in the telecommunications sector. This fund was started in 2000, and has been in operation for almost nine years. The minimum investment amount is a low twenty five hundred dollars, making it ideal for smaller investment amounts as well. The Fidelity Select Wireless Fund has at least eighty percent of the investment portfolio in telecommunications equity securities, which does make it a higher risk because the fund is not well diversified, but for investors who choose this telecommunications mutual fund the higher returns are worth the risk. This is one of the true no load mutual funds, because in addition to not charging any load fees the fund does not involve any 12b-1 marketing fees either, and at times these marketing fees can be used by some funds to hide load fees.
There are many telecommunication funds to choose from, and choosing no load mutual funds are the best way to go if you are comfortable learning and making your own investment decisions. Very few investors are unable to make the best investment decisions, so there is no need to pay load fees of five percent or more. Load funds do not perform better, in fact they simply take part of your investment capital in exchange for professional advice which is not usually needed. This causes a lower investment value and returns, and this is not the case with no load funds. There are many telecommunication funds which are also no load mutual funds, so finding ones which are right for you is simply a matter of looking for them and doing all the necessary research and evaluations. Some of the other best no load funds involving telecommunication include the T. Rowe Price Media & Telecommunications Fund, ticker symbol PRMTX, the ProFunds UltraSector Mobile Telecomm Inv, with a symbol of WCPIX, and the ICON Telecommunications & Utilities, with the symbol ICTUX. All of these are no load mutual funds which offer many benefits to investors, but that also involve some risks as well. Thorough evaluation and fund comparisons will help you find the right telecommunication funds which fit with your risk levelas and your investment strategies.
