Top 5 Zacks #1 Ranked Real Estate Mutual Funds

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Even though real estate has been through tough times recently, securities from this sector should continue to be an integral part of portfolios with a long term horizon. Over the years, mutual funds from this category have continued to perform favorably. They offer a convenient method to invest in real estate because of low initial investment requirements and the advantage of professional management. Investors willing to hold long term positions would do well to consider these funds as they add stability and bring steady returns to a portfolio.

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.

ING Clarion Global Real Estate S2 (IRGSX) invests a large proportion of its assets in equity securities of real estate companies. The fund invests in companies located worldwide as well as domestic firms. The real-estate mutual fund returned 26.22% over the last one year period.

The real estate mutual fund has an expense ratio of 1.29% compared to a category average of 1.46%.

Dreyfus Global Real Estate Securities A (DRLAX) seeks current income and capital growth. The fund invests heavily in publicly traded equity securities of real estate companies. These firms must derive at least half their revenues from the real estate sector. The real-estate mutual fund returned 29.49% over the last one year period.

As of September 2012, this real-estate mutual fund held 110 issues, with 5.67% of its total assets invested in Simon Property Group, Inc.

Principal Real Estate Securities R2 (PRENX) invests heavily in equity securities of real estate companies. The fund also invests in real estate investment trusts and companies with significant real estate assets, such as paper, lumber hotel and entertainment firms. The real-estate mutual fund returned 31.49% over the last one year period.

Kelly Rush is the Fund Manager and he has been managing this real estate mutual fund since 2000.

Goldman Sachs US Real Estate A (GREAX) seeks capital appreciation and dividend income. The fund utilizes a large proportion of its assets to purchase equity securities of companies from the real estate sector or those with linkages to the industry. The real-estate mutual fund returned 34.34% over the last one year period.

The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.44% compared to a category average of 1.37%.

John Hancock Real Estate Securities (JIREX) invests a large proportion of its assets in equity securities issued by real estate investment trusts and companies. Not more than 10% of its assets may be invested in foreign firms. The real-estate mutual fund returned 32.64% over the last one year period.

John F. Robertson is the Fund Manager and he has been managing this real estate mutual fund since 2005.

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.

Read the analyst report on IRGSX

Read the analyst report on DRLAX

Read the analyst report on PRENX

Read the analyst report on GREAX

Read the analyst report on JIREX



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