Even though real estate has been through tough times recently, securities from this sector should continue to be an integral part of portfolios with a long term horizon. Over the years, mutual funds from this category have continued to perform favorably. They offer a convenient method to invest in real estate because of low initial investment requirements and the advantage of professional management. Investors willing to hold long term positions would do well to consider these funds as they add stability and bring steady returns to a portfolio.
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.
Fidelity International Real Estate (FIREX - Free Report) seeks capital growth. The fund invests majority of its assets in foreign securities of real estate or related firms. Investments are parked after evaluating certain parameters. These include the company’s financial condition and its position in the industry relative to its peers. The non-diversified real-estate mutual fund returned 10.22% over the last one year period.
Guillermo de las Casas is the fund manager and has managed this real estate mutual fund since 2010.
Spirit of America Real Estate Income & Group A (SOAAX - Free Report) invests in equity REITs and equity securities of real estate companies. Investments can also be made in mortgage-backed securities, master limited partnerships, short-term investments and taxable municipal obligations. The real-estate mutual fund returned 6.84% over the last one year period.
The fund has an expense ratio of 1.75% as compared to category average of 1.33%.
Forward Real Estate Long/Short A seeks total return and capital growth on a long-term basis. The fund invests a lion’s share of its assets in securities of those companies which are involved in real estate industry. Investments are made in domestic and foreign companies inclusive of those from emerging nations. The real-estate mutual fund returned 4.96% over the last one year period.
Ian Goltra is the fund manager and has managed this non-diversified fund since 2010..
Davis Real Estate A (RPFRX - Free Report) invests the majority of its assets in securities of companies whose principal operations are related to the real estate sector. The fund focuses on acquiring equity securities, especially common stocks. The real-estate mutual fund returned 4.47% over the last one year period.
As of December 2013, this fund held 43 issues with 7.33% of its assets invested in Simon Property Group Inc.
Rydex Real Estate A (RYREX - Free Report) seeks capital growth. The fund invests a large share of its assets in real estate equity securities traded on domestic exchanges. It also invests in derivatives, focusing on futures and options. The real-estate mutual fund returned 4.91% over the last one year period.
The fund has an expense ratio of 1.61% as compared to category average of 1.33%.
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.
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