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 3 potential real estate mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (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.
Fidelity Real Estate Investment Portfolio (FRESX) seeks high income and capital appreciation over the long run. The fund invests a lion’s share of its assets in companies involved in the real estate sector. It focuses on acquiring common stocks of companies throughout the globe. Factors including financial strength and economic condition are considered before investing in a company. The non-diversified real-estate mutual fund returned 19.8% over the last one year period.
The fund has an expense ratio of 0.80% as compared to category average of 1.32%.
CGM Realty (CGMRX) invests a 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 23.1% over the last one year period.
G. Kenneth Heebner is the fund manager and has managed this real estate mutual fund since 1994.
Cohen & Steers Real Estate Securities A (CSEIX) seeks total return. It invests a large chunk of its assets in common stocks of companies whose operations are related to the real estate domain and REITs. The fund is expected to invest not more than 20% of its assets in non-U.S. companies including that from emerging economies. It may also invest in Depositary Receipts of different countries. The non-diversified real-estate mutual fund returned 23.1% over the last one year period.
The fund has an expense ratio of 1.21% as compared to category average of 1.32%.
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. Pick the best mutual funds with the Zacks Rank.
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