For investors looking to park their funds in the real estate
sector, mutual funds are the most cheapest and convenient method.
This category of funds also offers superior protection against
inflation. The real estate sector has seen tough times recently but
the presence of these investments generally adds stability to a
portfolio. This is because the volatility in property prices is far
less compared to the kind experienced by stocks. Adding such funds
to a widely diversified portfolio would increase returns while
reducing the associated risk significantly.
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
.
Principal Real Estate Securities R2
(
PRENX
) invests heavily in equity securities of real estate companies.
The fund also invests in real estate investment trusts and
companies with significant real estate assets, such as paper,
lumber hotel and entertainment firms. The real-estate mutual fund
returned 11.38% over the last one year period.
Kelly Rush is the Fund Manager and he has been managing this
real estate mutual fund since 2000.
Franklin Real Estate Securities A
(
FREEX
) seeks both current income and capital growth. Real estate
investment trusts and companies which derive at least half of their
revenues from operations in the real estate sector constitute its
major investments. The real-estate mutual fund returned 12.32% over
the last one year period.
The real estate mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.14% compared to a category average
of 1.38%.
Oppenheimer Real Estate A
(
OREAX
) utilizes the majority of the fund's assets to purchase equity
securities, such as common stocks of companies form the real estate
sector. It may also consider parking funds in real estate operating
companies. The real-estate mutual fund returned 10% over the last
one year period.
As of June 2012, this real-estate mutual fund held 40 issues,
with 11.68% of its total assets invested in Simon Property Group,
Inc.
Goldman Sachs US Real Estate A
(
GREAX
) seeks capital appreciation and dividend income. The fund utilizes
a large proportion of its assets to purchase equity securities of
companies from the real estate sector or those with linkages to the
industry. The real-estate mutual fund returned 14.75% over the last
one year period.
Nora Creedon is the Fund Manager and she has been managing this
real estate mutual fund since 2010.
John Hancock Real Estate Securities
(
JIREX
) invests a large proportion of its assets in equity securities
issued by real estate investment trusts and companies. Not more
than 10% of its assets may be invested in foreign firms. The
real-estate mutual fund returned 11.55% over the last one year
period.
The real estate mutual fund has an expense ratio of 0.79%
compared to a category average of 1.38%.
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
(FREEX): ETF Research Reports
(GREAX): ETF Research Reports
(JIREX): ETF Research Reports
(OREAX): ETF Research Reports
(PRENX): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment
Research