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Mutual Fund Commentary

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.

Invesco Global Real Estate A (AGREX - MF report) invests in equity securities of real estate companies. It may invest in government bonds as well as junk bonds related to the real estate sector. It holds securities from issuers located in at least three countries, including the US. The real-estate mutual fund returned 40.58% over the last one year period.

Joe Rodriguez, Jr. is the Fund Manager and he has been managing this real estate mutual fund since 2005.

MFS Global Real Estate A (MGLAX - MF report) seeks total return. It invests heavily in equity securities of both domestic and foreign real estate companies. The fund may invest heavily in any particular country or few selected countries. The real-estate mutual fund is non-diversified and has returned 27.31% over the last one year period.

The real estate mutual fund has an expense ratio of 1.24% compared to a category average of 1.45%.

ING Clarion Global Real Estate Port S2 (IRGSX - MF report) invests heavily in equity securities of real estate companies. The fund purchases both domestic and foreign companies. It also invests in securities of companies from emerging market nations. The real-estate mutual fund returned 23.64% over the last one year period.

T. Ritson Ferguson is the fund manager and he has managed this real estate mutual fund since 2006.

ING International Real Estate A (IIRAX - MF report) seeks a high level of total return. The fund invests the majority of its assets in equity securities of firms whose principal operations are related to the real estate sector. A minimum of 65% of its assets are invested in foreign countries. The real-estate mutual fund returned 34.68% over the last one year period.

As of March 2013, this real estate mutual fund held 99 issues, with 6.60% of its total assets invested in Mitsubishi Estate.

Fidelity International Real Estate (FIREX - MF report) invests a large share of its assets in securities of real estate companies or other investments related to the sector. Generally, it focuses on foreign securities and common stocks. The real-estate mutual fund returned 40.58% over the last one year period.

The real estate mutual fund has an expense ratio of 1.12% 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.

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