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Mutual Fund Commentary

Top 5 Zacks #1 Ranked Real Estate Mutual Funds

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For investors looking to park their funds in the real estate sector, mutual funds are the most cheapest and convenient method. This category of funds also offers superior protection against inflation. The real estate sector has seen tough times recently but the presence of these investments generally adds stability to a portfolio. This is because the volatility in property prices is far less compared to the kind experienced by stocks. Adding such funds to a widely diversified portfolio would increase returns while reducing the associated risk significantly.

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.

Dreyfus Global Real Estate Securities A seeks current income and capital growth. The fund invests heavily in equity securities of real estate companies. These firms must earn not less than half of their income from the real estate business. It invests in companies located worldwide. The real-estate mutual fund returned 16.51% over the last one year period.

The real estate mutual fund has an expense ratio of 1.55% compared to a category average of 1.46%.

Fidelity Real Estate Income invests heavily in securities of real estate companies or other investments related to the sector. The fund may invest in both domestic and foreign securities. The real-estate mutual fund returned 19.15% over the last one year period.

As of September 2012, this real-estate mutual fund held 484 issues, with 4.28% of its total assets invested in Banc Amer Large Ln 2010-Hltn 2.00184%

DWS RREEF Global Real Estate Securities A seeks both current income and capital growth. It invests the majority of its assets in equity securities and debt instruments of real estate investment trusts (REITs) and similar entities. The fund may also invest in securities of other sectors. The real-estate mutual fund returned 16.83% over the last one year period.

John Robertson is the Fund Manager and he has been managing this real estate mutual fund since 2006.

ING Clarion Global Real Estate Port S2 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 14.22% over the last one year period.

The real estate mutual fund has an expense ratio of 1.29% compared to a category average of 1.46%.

Invesco Global Real Estate A seeks total return. The fund 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 16.31% 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.

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.

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