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Top 5 Best Performing Real Estate Mutual Funds Year to Date

Zacks Investment Research

Investments in the real estate sector are expected to provide excellent protection against inflationary pressures. This is why they should necessarily be part of portfolios with a long term horizon and aid in diversification. Additionally, they lend stability to a portfolio, despite the difficult phase real estate has passed through recently. This is because the volatility in property prices is far less compared to the kind experienced by stocks over the longer term. Real estate funds offer a cost effective and convenient method of holding these investments.

Below we will share with you the 5 best performing real estate mutual funds year to date.  To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.

 

Mutual Fund

Zacks Rank

Total Return YTD

Forward International Real Estate A

#1 Strong Buy

25.3%

Forward Real Estate Long/Short A

#1 Strong Buy

12.9%

T. Rowe Price Real Estate

#1 Strong Buy

12.5%

Fidelity Real Estate Investment

#1 Strong Buy

11.8%

CGM Realty

#1 Strong Buy

11.3%

 

Forward International Real Estate A (KIRAX) invests the majority of its assets in foreign equity securities issued by companies from the real estate sector and those engaged in related activities. The fund may purchase emerging market securities and purchase ADRs. The real-estate mutual fund has a three year annualized return of 25.86%.

Ian S. Goltra is the Fund Manager and he has been managing this real estate mutual fund since 2010.

Forward Real Estate Long/Short A (KSRAX) seeks both current income and capital appreciation. The fund invests the majority of its assets in real estate securities. These may be issued by real estate investment trusts or companies operating in the sector. The real-estate mutual fund has a ten year annualized return of 43.53%.

The real estate mutual fund has a minimum initial investment of $4,000 and an expense ratio of 1.67% compared to a category average of 1.38%.

T. Rowe Price Real Estate (TRREX) invests a large share of its assets in companies from the real estate sector. Not more than 20% of its assets may be invested in companies which generate a significant part of their revenues by servicing real estate companies. The real-estate mutual fund has a three year annualized return of 45.71%.

As of March 2012, this real-estate mutual fund held 39 issues, with 10.09% of its total assets invested in Simon Property Group, Inc.

Fidelity Real Estate Investment (FRESX) seeks both capital growth and income. The fund invests the majority of its assets in real estate companies or other investments related to the sector. The fund is non-diversified and invests in both domestic and foreign securities. The real estate mutual fund has a three year annualized return of 47.64%.

Steve J. Buller is the Fund Manager and he has been managing this real estate mutual fund since 1997.

CGM Realty (CGMRX) primarily invests in companies in the real estate sector. Up to 20% of its assets may be used to purchase securities from other sectors. The real-estate mutual fund has a ten year annualized return of 8.44%.

The real estate mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.45%.

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 KIRAX

Read the analyst report on KSRAX

Read the analyst report on TRREX

Read the analyst report on FRESX

Read the analyst report on CGMRX

Zacks Investment Research



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