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.

Voya Real Estate A (CLARX) seeks total return with consistent capital growth and current income. It invests a lion’s share of its assets in domestic real estate firms and REITs. It invests in companies of any market capitalization greater than $100 million. The non-diversified real-estate mutual fund returned 18.64% over the last one year period.

The fund has an expense ratio of 1.22% as compared to category average of 1.32%.

Goldman Sachs Real Estate A (GREAX) invests major potion of its assets in companies which are involved in the real estate sector. It may also invest a maximum of 20% of its assets in fixed income instruments including government and corporate debt securities. The non-diversified real-estate mutual fund returned 18.42% over the last one year period.

Nora Creedon is the fund manager and has managed this real estate mutual fund since 2010.

Principal Global Real Estate Securities A (POSAX) seeks total return over the long run. It invests largely in both domestic and foreign companies whose operation is related to the real estate industry. It invests in companies of any market capitalization irrespective of their location and including those from emerging economies. The non-diversified real-estate mutual fund returned 18.47% over the last one year period.

As of May 2014, this fund held 91 issues with 5.89% of its assets invested in Simon Property Group Inc.

CGM Realty (CGMRX) invests majority of its assets in real estate companies and REITs. It may invest a maximum of 20% of its assets in equities and debt securities of firms from other sectors irrespective of their credit quality and maturity. It invests in both domestic and foreign companies without considering their market capitalization. The real-estate mutual fund returned 22.33% over the last one year period.

The fund has an expense ratio of 0.92% as compared to category average of 1.32%.

Davis Real Estate A (RPFRX) seeks total return utilizing growth and income. It invests a large portion of its assets in companies all over the globe whose operation is related to the real estate sector, using the Davis Investment Discipline. It mainly focuses on acquiring securities of REITs. The real-estate mutual fund returned 16.02% over the last one year period.

Chandler Adams Spears is the fund manager and has managed this real estate mutual fund since 2002.

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 CLARX

Read the analyst report on GREAX

Read the analyst report on POSAX

Read the analyst report on CGMRX

Read the analyst report on RPFRX


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