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.

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 3.05% over the last one year period.

Steve S. Shigekawa is the fund manager and he has managed this real estate mutual fund since 2005.

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 6.89% over the last one year period.

The real estate mutual fund has an expense ratio of 1.58% higher than category average of 1.33%.

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 3.18% over the last one year period.

As of October 2013, this real estate mutual fund held 47 issues, with 10.01% of its total assets invested in Simon Property Group Inc.

VALIC Company I Global Real Estate (VGREX) invests most of its assets in companies involved in real estate and related activities. A maximum of 75% of assets can be invested in foreign securities which may include securities from emerging markets. The real-estate mutual fund returned 7.37% over the last one year period.

Joe Rodriguez, Jr is the fund manager and he has managed this real estate mutual fund since 2008.

ING International Real Estate A (IIRAX) invests most of its assets in equity of companies involved in real estate and related activities. A minimum of 65% of its assets are invested in foreign securities which may include securities from emerging markets. The diversified real-estate mutual fund returned 8.96% over the last one year period.

The real estate mutual fund has an expense ratio of 1.50% higher than category average of 1.42%.

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.

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Read the analyst report on NBRFX

Read the analyst report on PRENX

Read the analyst report on JIREX

Read the analyst report on VGREX

Read the analyst report on IIRAX


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