P> Real estate mutual funds should continue to be part of portfolios with a long term horizon even though the sector has gone through difficult times in the recent past. Funds investing in this sector have consistently delivered good returns and offer a convenient and economical option to investors. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns over the long term.
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, then click here.
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 33.31% over the last one year period.
James Otness is the Fund Manager and he has been managing this real estate mutual fund since 2009.
Neuberger Berman Real Estate (NBRFX) 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 has a three year annualized return of 11.22%.
As of May 2011, this real-estate mutual fund held 42 issues, with 8.23% of its total assets invested in Simon Property Group, Inc.
Oppenheimer Real Estate A (OREAX) seeks total return. The majority of the fund’s assets are used to purchase equity securities, such as common stocks of companies from the real estate sector. The real-estate mutual fund returned 34.47% over the last one year period.
The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.49% compared to a category average of 1.46%.
Nuveen Real Estate Securities A (FREAX) invests in publicly traded companies from the real estate sector. The fund focuses on acquiring income-generating common stock of real estate companies. Not more than 25% of its assets may be used to purchase foreign stocks. The real estate mutual fund has a ten year annualized return of 12.62%.
John G. Wenker is the Fund Manager and he has been managing this real estate mutual fund since 1999.
JPMorgan US Real Estate A (SUSIX) seeks capital appreciation and current income. The fund invests the majority of its assets in domestic real estate companies whose securities are traded publicly. At least 25% of its assets are invested in companies with interests in the real estate sector. The real-estate mutual fund returned 32.46% over the last one year period.
The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.17% compared to a category average of 1.46%.
To view the Zacks Rank and past performance of all real estate mutual funds, then click here.
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.