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3 Best Real Estate Mutual Funds to Invest In

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Securities from the real estate sector continue to be an integral part of any portfolio with a long-term lookout. Over the years, mutual funds from this category have performed favorably. They are a convenient way to invest in real estate because of their 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 three best-rated 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.

Davis Real Estate A (RPFRX - Free Report) utilizes the Davis Investment Discipline to allocate the majority of its assets in securities of companies primarily involved in operations related to the real estate sector. Though RPFRX primarily invests in common stocks of companies located in the U.S., RPFRX may also invest in non-U.S. companies, including depositary receipts. Davis Real Estate A has a three-year annualized return of 13.3%.

As of June 2016, RPFRX held 43 issues, with 7.46% of its total assets invested in Simon Property Group Inc.

VY Clarion Real Estate S (IVRSX - Free Report) seeks returns through high income and long-term capital appreciation. IVRSX invests a large chunk of its assets in common stocks of companies whose operations are related to the real estate domain and REITs. VY Clarion Real Estate S has a three-year annualized return of 13.5%.

IVRSX has an expense ratio of 0.96% as compared to the category average of 1.2%.

PIMCO Real Estate Real Return Strategy C (PETCX - Free Report) invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. PETCX seeks to provide maximum real return. The fund also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. PIMCO Real Estate Real Return Strategy C has a three-year annualized return of 14.3%.

As of June 2016, PETCX held 455 issues, with 37.32% of its total assets invested in US Treasury Note

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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