Mutual funds investing the real estate sector should be a necessary addition to portfolios with a long term horizon even though the sector has traversed rough waters in the recent past. Real estate mutual funds have delivered significantly high returns in the past and offer a convenient method for investing in this sector. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns to portfolios over the long term.
Below we will share with you 5 top rated real estate mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.
Nuveen Real Estate Securities A (FREAX) seeks current income and long term capital growth. The fund invests in publicly traded companies from the real estate sector. The fund focuses on acquiring income-generating common stock of real estate companies. The real-estate mutual fund returned 10.71% over the last one year period.
John G. Wenker is the Fund Manager and he has been managing this real estate mutual fund since 1999.
T. Rowe Price Real Estate (TRREX) invests a large share of its assets in companies from the real estate sector. Not more than 20% of its assets may be invested in companies which generate a significant part of their revenues by servicing real estate companies. The real-estate mutual fund returned 11.64% over the last one year period.
The real estate mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.78% compared to a category average of 1.38%.
American Century Real Estate (REACX) seeks a high level of total return. The fund invests heavily in equity securities of real estate investment trusts and companies from the real estate industry. The real-estate mutual fund returned 14.45% over the last one year period.
As of March 2012, this real-estate mutual fund held 51 issues, with 11.98% of its total assets invested in Simon Property Group, Inc.
Fidelity Real Estate Investment (FRESX) invests the majority of its assets in real estate companies or other investments related to the sector. The fund is non-diversified and invests in both domestic and foreign securities. The real-estate mutual fund returned 13.35% over the last one year period.
Steve J. Buller is the Fund Manager and he has been managing this real estate mutual fund since 1997.
Neuberger Berman Real Estate (NBRFX) seeks capital growth and current income. The fund primarily invests in equity securities issued by real estate investment trusts. It also invests in common stocks and other securities issued by companies from the real estate industry. The real-estate mutual fund returned 11.76% over the last one year period.
The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.99% compared to a category average of 1.38%.
To view the Zacks Rank and past performance of all real estate mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
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