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) or #2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Cohen & Steers Real Estate Securities Fund, Inc. Class A (CSEIX - Free Report) invests the majority of its assets in common stocks and other equity securities issued by real estate companies. The non-diversified fund aims for total return. CSEIX has three-year annualized returns of 4.7%.
As of the end of June 2020, CSEIX held 43 issues, with 12.34% of its assets invested in American Tower Corp.
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 returned 2.8% in the past three years.
Steve J. Buller is one of the fund managers of FRESX since 1997.
John Hancock Funds II Real Estate Securities Fund Class 1 (JIREX - Free Report) seeks appreciation of capital and income over the long term. JIREX invests primarily in the equity securities of companies engaged in operations related to the real estate sector, which includes REITs. The fund invests in securities like common stocks, preferred stocks and convertible securities. It may invest a maximum of 10% of its assets in securities of companies domiciled outside the U.S. territory. JIREX has three-year annualized returns of 4.1%.
JIREXcarries an expense ratio of 0.80% compared with the category average of 1.20%.
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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