Top 5 Zacks #1 Ranked Real Estate Mutual Funds

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For investors looking to park their funds in the real estate sector, mutual funds are the most cheapest and convenient method. This category of funds also offers superior protection against inflation. The real estate sector has seen tough times recently but the presence of these investments generally adds stability to a portfolio. This is because the volatility in property prices is far less compared to the kind experienced by stocks. Adding such funds to a widely diversified portfolio would increase returns while reducing the associated risk significantly.

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.

Davis Real Estate A (RPFRX) seeks both income and growth. It invests the majority of its assets in securities of companies whose principal operations are related to the real estate sector. The fund focuses on acquiring equity securities, especially commons stocks. The real-estate mutual fund returned 9.30% over the last one year period.

The real estate mutual fund has an expense ratio of 1.01% compared to a category average of 1.37%.

Cohen & Steers Emerging Markets Real Estate A (APFAX) invests heavily in securities of real estate firms from emerging markets. A maximum of 20% of its assets may be invested in real estate firms from mature or developed markets. The real-estate mutual fund returned 21.00% over the last one year period.

Robert Steers is the fund manager and he has managed this real estate mutual fund since 2006.

JPMorgan International Realty A (JIRAX) seeks capital appreciation over the long term. The fund invests in equity securities of real estate investment trusts (REITs) and related companies. A maximum of 20% of the fund’s assets may be utilized to purchase foreign debt instruments. The real-estate mutual fund returned 25.38% over the last one year period.

As of March 2013, this real estate mutual fund held 57 issues, with 8.03% of its total assets invested in Mitsui Fudosan Co., Ltd.

Fidelity International Real Estate (FIREX) invests a large share of its assets in securities of real estate companies or other investments related to the sector. Generally, it focuses on foreign securities and common stocks. The real-estate mutual fund returned 30.13% over the last one year period.

The real estate mutual fund has an expense ratio of 1.12% compared to a category average of 1.45%.

ING International Real Estate A (IIRAX) seeks a high level of total return. The fund invests the majority of its assets in equity securities of firms whose principal operations are related to the real estate sector. A minimum of 65% of its assets are invested in foreign countries. The real-estate mutual fund returned 26.20% over the last one year period.

T. Ritson Ferguson is the Fund Manager and he has been managing this real estate mutual fund since 2006.

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.

Read the analyst report on RPFRX

Read the analyst report on APFAX

Read the analyst report on JIRAX

Read the analyst report on FIREX

Read the analyst report on IIRAX



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