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 also 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 compared to 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.
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. CSEIXhas returned 32% on a year-to-date basis.
As of September 2019, CSEIX held 50 issues, with 5.43% of its assets invested in Crown Castle International Corp.
DWS RREEF Real Estate Securities Fund Class A (RRRAX - Free Report) seeks long-term capital growth and current income. The fund invests the majority of its assets in equity securities of real estate investment trusts and real estate companies. RRRAX is a non-diversified fund and has returned 32.9% on a year-to-date basis.
John W. Vojticek is one of the fund managers of RRRAX since 2004.
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 27.8% on a year-to-date basis.
FRESX carries an expense ratio of 0.74% compared with the category average of 1.22%.
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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