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3 Top Real Estate Mutual Funds to Build Positions In

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Steady increase in hiring and healthier finances has made home purchases affordable, with housing starts touching a nine-year high in October. President-elect Donald Trump’s emphasis to boost infrastructural spending is further expected to spark off sharp gains for the top publicly traded real estate companies.

Moreover, investing in the real estate sector adds stability to a portfolio. This is because the volatility in property prices is far less compared to the kind experienced by stocks. Hence, investors willing to hold long-term positions would do well to consider real estate mutual funds as they add stability and bring steady returns to a portfolio.

Below we share with you three best-rated real estate mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

PIMCO Real Estate Real Return Strategy A (PETAX - Free Report) invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. PETAX seeks to provide maximum real return. The fund also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. PIMCO Real Estate Real Return Strategy A has a three-year annualized return of 11.2%.

PETAX has an expense ratio of 1.14% as compared to the category average of 1.28%.

Fidelity Real Estate Investment Portfolio (FRESX - Free Report) seeks long-term appreciation of capital and income. FRESX invests a bulk of its assets in securities of companies, which are involved in the real estate sector. The fund invests both in U.S. and non-U.S. companies. Fidelity Real Estate Investment Portfolio has a three-year annualized return of almost 11%.

Steve Buller is the asset manager of FRESX since Dec 1997.

JPMorgan Realty Income A invest the majority of its assets in equity securities of real estate investment trusts (REITs). URTAX may invest in both equity REITs and mortgage REITs. The fund may also invest a maximum 15% of its assets in illiquid holdings. URTAX seeks high total investment return through a combination of capital appreciation and current income. JPMorgan Realty Income A is non-diversified and has a three-year annualized return of 8.8%.

URTAX has an expense ratio of 1.18% as compared to the category average of 1.28%.

To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.

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