The Fourth Industrial Revolution brings a fusion of technologies, from cloud computing to Artificial Intelligence (AI) and the Internet of Things (IoT). Whether in the field of medicine, manufacturing or business services, a network of connected devices is being used to control, monitor or collect data. Even at home, computers and smartphones are being connected to essentials at home, such as light bulbs, televisions, air conditioners with doorbells for safety and comfort.

The IoT has now become an integral part of our daily lives. This network of machines and computing devices has unique identifiers that have the ability to exchange data without human intervention. Therefore, users can easily connect and personalize smart home appliances and robots for home security and control. In fact, rapid advances in technology enable physicians to know about patients’ health with the help of wearable devices and to make proper diagnoses before emergencies.

Recently, the IoT environmental sensor segment witnessed solid growth. This small device can be used to monitor air pollution. According to a Research and Markets report, the global environmental monitoring market is expected to reach a value of $ 25.95 billion by 2028 with a CAGR of 7.0%. Its operational flexibility, versatility, small equipment size, low maintenance cost and low space demand are the main factors driving growth.

Rapid digital transformation has increased the IoT space late, but the pandemic has pushed adoption upwards. In fact, the development of wireless networks along with the massive reduction in the cost of connected devices, the increase in cloud platform adoption, and the rise of advanced data analytics have helped explode the IoT space. According to a Mordor Intelligence report, the global IoT market is estimated to reach a value of $ 1.386.06 billion by 2026 from $ 761.4 billion in 2020, to a CAGR of 10.53%.

Moreover, growth is expected to be highest in the industrial sector. With 5G deployment continuing at a steady pace, industrial IoT 5G systems will provide next-generation wireless connectivity. with higher data transfer speeds and lower latency compared to their predecessors. This in turn will promote business communication, emergency incident management, automation control and management, real-time workforce tracking and management, logistics and supply chain management, asset tracking and management, process optimization business and predictive maintenance. A comprehensive survey by Future Market Research Reports stated that the 5G Industrial IoT market size is expected to exceed revenue of $ 8.9 billion by 2027, at a CAGR of 71.3%.

4 Fund selection

The IoT is constantly supporting digital transformation and is forming the backbone of technology space. While pure IoT companies are rare, we have selected four mutual funds that hold a Zacks Mutual Fund Rank # 1 (Strong Purchase) and have considerable exposure to such companies.

Moreover, these funds have encouraging returns from year to year. Moreover, the minimum initial investment is within $ 5000. We expect these funds to exceed peers in the future.

The question here is why should investors consider mutual funds? Reducing transaction costs and diversifying the portfolio without some commissions associated with stock purchases are mainly why you should park money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages and How Investors Make Money) .

Loyalty Choice Technology Portfolio The FSPTX Fund aims at equity valuation. The fund invests primarily in securities, especially ordinary shares of companies that are engaged in the provision, use or development of products, processes or services that will provide or significantly benefit from technological advances and improvements.

This Zacks Sector – Tech product has a history of total positive returns for more than 10 years. Specifically, this non-diversified fund that has returned 31.2% and 33.5% respectively in the last three and five years. To see how this fund worked compared to its category, and the other Funds Ranked 1 and 2, please click here.

FSPTX has an annual expenditure ratio of 0.69%, which is below the category average of 1.05%.

Semiconductor Loyalty Selection Portfolio The FSELX Fund aims at capital valuation. The non-diversified fund invests most of its assets in securities of companies primarily engaged in the design, manufacture or sale of semiconductors and semiconductor equipment.

This Zacks Sector – Tech product has a history of total positive returns for more than 10 years. Specifically, FSELX has returned 34.2% and 34.8% respectively over the last three and five years, respectively. To see how this fund worked compared to its category, and the other Funds Ranked 1 and 2, please click here.

FSELX has an annual expenditure ratio of 0.70%, which is below the category average of 1.05%.

Fidelity Select Portfolio of IT Software and Services FSCSX aims at equity valuation. The non-diversified fund invests most of its assets in common stock of companies engaged in the research, design, production or distribution of products or processes related to software or information-based services.

This Zacks Sector – Tech product has a history of total positive returns for more than 10 years. Specifically, the FSCSX has returned 27.8% and 29.3% respectively over the last three years and five years. To see how this fund worked compared to its category, and the other Funds Ranked 1 and 2, please click here.

FSCSX has an annual expense ratio of 0.70% versus the category average of 1.05%.

Franklin DynaTech Class A Funds FKDNX aims at valuing capital. The fund mainly invests in common stock and the fund manager focuses on companies that are leaders in innovation, benefit from new technologies, have superior management and take advantage of new industry conditions.

This Sector-Technical product has a history of total positive returns for over 10 years. Specifically, FKDNX has returned 28.9% and 29% respectively over the last three and five year period. To see how this fund performed compared to its category, and the other Funds Ranked # 1 and # 2, please click here.

FKDNX has an annual expenditure ratio of 0.85% versus the category average of 0.99%.

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