4 Funds to Tap Now as 5G Deployment Boosts Cloud Space
Zacks Investment Research | Jun 09, 2021 09:40PM ET
Cloud computing has been one of the hottest and fastest-growing segments of the tech sector, both before and during the pandemic. In fact, the pandemic opened up the cloud space for those businesses and industries that were hesitating to go through this digital transformation. Cloud computing enables users to access data from anywhere and at any time with the help of Internet. Here is where 5G technology comes into play. 5G’s low latency, higher capacity, and increased bandwidth are making the cloud space operate smoothly.
The combination of 5G with cloud computing will help firms to lower IT costs by removing the need for servers and related maintenance costs, while providing faster and high-quality services. In fact, 5G will reduce the response time and make it easier to carry out remote tasks. Especially, in the new normal era where majority of the employees are working from home, cloud computing has become a necessity and also offers flexibility in costs, scalability, and efficiency for companies that cannot turn their heads away from digitization. According to a Gartner (NYSE:IT) forecast, global end user spending on public cloud services is expected to grow to $332 billion in 2021, at an annual rate of 23.1%.
Beyond corporate usage, 5G and cloud have seen wide acceptance in daily life, especially in entertainment. Cloud gaming hosted in remote servers is streamed globally and thanks to 5G’s higher speed and lower latency, gamers and viewer can have better experience. With further 5G deployment gamers will be able to immerse themselves in augmented and virtual reality experience.
Additionally, even at homes and in personal life, cloud and 5G have become an integral part. Smartphone makers have started launching 5G-enabled phones and with the growing usage of Internet of Things (IoT), these phones can connect to other household devices easily. From smart home devices to self-driven cars, personal care gadgets 5G and cloud computing are making life easier and comfortable.
4 Top Picks/h3
With 5G deployment, the cloud space is sure to boom. Therefore, we have selected four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and invest in companies that have exposure in cloud computing and 5G. These funds have returned more than 30% to investors on a year-to-date basis. In addition, the minimum initial investment is within $5,000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: To read this article on Zacks.com click here.
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