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Consider These 3 Real Estate Mutual Funds for a Steady Portfolio
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For investors looking to park their money in the real-estate sector, mutual funds are the cheapest and most-convenient options. This category of funds offers solid protection against inflation.
The real-estate sector recently saw tough times but the presence of this investment vehicle generally adds stability to a portfolio. This is because volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns while significantly reducing the associated risk.
Fidelity Real Estate Income Fund (FRIFX - Free Report) aims for higher-than-average income, while capital growth stands as a secondary objective. The fund invests the majority of assets in preferred and common stocks of REITs, debt securities of real estate entities, and commercial and other mortgage-backed securities. FRIFX has three-year annualized returns of 9.1%.
William Maclay is one of the fund managers of FRIFX since 2019.
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 14.7%.
As of the end of May 2021, TRRSX held 73 issues, with 6.24% of its assets invested in American Tower Corp.
Fidelity Real Estate Investment Portfolio (FRESX - Free Report) fund aims for above-average income and long-term capital growth, which is consistent with reasonable investment risk. This non-diversified fund invests primarily in common stocks. The majority of FRESX’s assets are invested in securities of companies, principally engaged in the real estate industry and other real estate-related investments. FRESX has three-year annualized returns of 9.8%.
FRESX carries an expense ratio of 0.74% compared with the category average of 1.08%.
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Consider These 3 Real Estate Mutual Funds for a Steady Portfolio
For investors looking to park their money in the real-estate sector, mutual funds are the cheapest and most-convenient options. This category of funds offers solid protection against inflation.
The real-estate sector recently saw tough times but the presence of this investment vehicle generally adds stability to a portfolio. This is because volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns while significantly reducing the associated risk.
Below we share with you three top-ranked 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.
Fidelity Real Estate Income Fund (FRIFX - Free Report) aims for higher-than-average income, while capital growth stands as a secondary objective. The fund invests the majority of assets in preferred and common stocks of REITs, debt securities of real estate entities, and commercial and other mortgage-backed securities. FRIFX has three-year annualized returns of 9.1%.
William Maclay is one of the fund managers of FRIFX since 2019.
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 14.7%.
As of the end of May 2021, TRRSX held 73 issues, with 6.24% of its assets invested in American Tower Corp.
Fidelity Real Estate Investment Portfolio (FRESX - Free Report) fund aims for above-average income and long-term capital growth, which is consistent with reasonable investment risk. This non-diversified fund invests primarily in common stocks. The majority of FRESX’s assets are invested in securities of companies, principally engaged in the real estate industry and other real estate-related investments. FRESX has three-year annualized returns of 9.8%.
FRESX carries an expense ratio of 0.74% compared with the category average of 1.08%.
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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