Back to top

Mutual Fund Commentary

Mutual funds investing the real estate sector should be a necessary addition to portfolios with a long term horizon even though the sector has traversed rough waters in the recent past. Real estate mutual funds have delivered significantly high returns in the past and offer a convenient method for investing in this sector. 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 to portfolios 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, investors can click here to see the complete list of funds.

American Century Real Estate (REACX - MF report) seeks a high level of total return. The fund invests heavily in equity securities of real estate investment trusts and companies from the real estate industry. The real-estate mutual fund returned 20.62% over the last one year period.

Steven R. Brown is the Fund Manager and he has been managing this real estate mutual fund since 2008.

Fidelity Real Estate Investment (FRESX - MF report) 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 returned 21.27% over the last one year period.

The real estate mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.84% compared to a category average of 1.37%.

Nuveen Real Estate Securities A (FREAX - MF report) seeks current income and long term capital growth. The fund invests in publicly traded companies from the real estate sector. The fund focuses on acquiring income-generating common stock of real estate companies. The real-estate mutual fund returned 18.38% over the last one year period.

As of July 2012, this real-estate mutual fund held 102 issues, with 12.17% of its total assets invested in Simon Property Group, Inc.

T. Rowe Price Real Estate (TRREX - MF report) 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 returned 19.36% over the last one year period.

David M. Lee is the Fund Manager and he has been managing this real estate mutual fund since 1997.

Neuberger Berman Real Estate (NBRFX - MF report) seeks capital growth and current income. The fund 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 returned 19.53% over the last one year period.

The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.99% compared to a category average of 1.37%.

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.

Please login to Zacks.com or register to post a comment.