Investing directly in the real estate sector may appear to be an
expensive proposition for most investors. This is where mutual
funds come in, offering a cost effective method of investing in
this industry. Real estate funds also offer significant protection
against inflationary pressures. Research has shown that they
perform better on this front compared to gold and other precious
metals. Including funds from this sector in a well diversified
portfolio helps increase returns while reducing the risk factor as
a whole.
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
.
T. Rowe Price Real Estate
(
TRREX
) invests a large share of its assets in companies from the real
estate sector. Not more than 20% of its assets may be invested in
companies which generate a significant part of their revenues by
servicing real estate companies. The real-estate mutual fund
returned 10.68% over the last one year period.
The real estate mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.78% compared to a category average
of 1.38%.
ING Real Estate A
(
CLARX
) seeks long term capital growth and current income. At least 80%
of its assets are invested in common and preferred stocks of real
estate companies and real estate investment trusts. It is
non-diversified and may also invest in convertible securities and
IPOs. The real-estate mutual fund returned 10.83% over the last one
year period.
T. Ritson Ferguson is the Fund Manager and he has been managing
this real estate mutual fund since 1996.
Fidelity Real Estate Investment
(
FRESX
) invests the majority of its assets in real estate companies or
other investments related to the sector. The fund is
non-diversified and invests in both domestic and foreign
securities. The real-estate mutual fund returned 10.8% over the
last one year period.
The real estate mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.85% compared to a category average
of 1.38%.
American Century Real Estate
(
REACX
) seeks a high level of total return. The fund invests heavily in
equity securities of real estate investment trusts and companies
from the real estate industry. The real-estate mutual fund returned
12.54% over the last one year period.
As of March 2012, this real-estate mutual fund held 51 issues,
with 11.98% of its total assets invested in Simon Property Group,
Inc.
Neuberger Berman Real Estate
(
NBRFX
) primarily invests in equity securities issued by real estate
investment trusts. It also invests in common stocks and other
securities issued by companies from the real estate industry. The
real-estate mutual fund returned 9.22% over the last one year
period.
Steve S. Shigekawa is the Fund Manager and he has been managing
this real estate mutual fund since 2005.
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 at
http://www.zacks.com/funds
.
View All Zacks #1 Ranked Mutual Funds
(CLARX): ETF Research Reports
(FRESX): ETF Research Reports
(NBRFX): ETF Research Reports
(REACX): ETF Research Reports
(TRREX): ETF Research Reports
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