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3 Real Estate Mutual Funds for a Steady Portfolio

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Investing in the real estate sector adds stability to one’s portfolio, mainly because volatility in property prices is far less than what is experienced by stocks. So, investors willing to hold long-term positions would do well to consider real estate mutual funds as these add stability and bring steady returns. This category of funds also offers superior protection against inflation and is a solid investment choice.

Below we share with you three top-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.

TIAA-CREF Real Estate Securities Fund Retirement Class (TRRSX - Free Report) seeks maximum total returns over the long run through growth of capital and current income. TRRSX invests a large chunk of its assets in companies primarily involved in operations related to the real estate domain. The fund may invest a maximum of 15% of its assets in securities issued by foreign entities. TRRSX has three-year annualized returns of 12.6%.

David Copp is one of the fund managers of TRRSX since 2005.

DWS RREEF Real Estate Securities Fund - Class A (RRRAX - Free Report) seeks long-term capital growth and current income. The fund invests the majority of its assets in equity securities of real estate investment trusts and real estate companies. RRRAX has three-year annualized returns of 10.4%.

RRRAX carries an expense ratio of 0.97% compared with the category average of 1.22%.

Fidelity Real Estate Investment Portfolio (FRESX - Free Report) aims for better-than-average income and long-term capital appreciation. The fund invests the majority of its assets in companies primarily engaged in the real estate industry and other real estate-related investments. It mostly invests in common stocks. FRESX has three-year annualized returns of 9%.

As of the end of December 2019, FRESX held 44 issues, with 10.63% of its assets invested in Prologis Inc.

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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