Top 5 Zacks #1 Ranked Real Estate Mutual Funds - Best of Funds

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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.

Oppenheimer Real Estate A (OREAX) invests the majority of its assets in equity stocks of real estate firms, focusing on common stocks. The fund concentrates on investing in REITs and real estate operating companies. The real-estate mutual fund is non-diversified and returned 15.83% over the last one year period.

Scott Westphal is the Fund Manager and he has been managing this real estate mutual fund since 2002.

Managers Real Estate Securities (MRESX) seeks total return. The fund invests a large share of its assets in firms whose principal operations are related to the real estate sector. The fund's portfolio consists of around 40 to 55 stocks. The real-estate mutual fund is non-diversified and has returned 15.84% over the last one year period.

The real estate mutual fund has an expense ratio of 1.26% compared to a category average of 1.36%.

Pioneer Real Estate A (PWREX) invests the majority of its assets in REITs and real estate companies. The fund may focus on specific sub-sectors of the real estate sector at specific points in time. The real-estate mutual fund returned 16.24% over the last one year period.

Jeffrey P. Caira is the fund manager and he has managed this real estate mutual fund since 2012.

Principal Real Estate Securities R2 (PRENX) seeks total return. The fund invests a large share of its assets in companies whose principal operations are related to the real estate sector. It invests in companies without regard to their market capitalization. The real-estate mutual fund is non-diversified and returned 16.24% over the last one year period.

As of April 2013, this real estate mutual fund held 44 issues, with 13.84% of its total assets invested in Mitsubishi Estate.

Fidelity Real Estate Investment (FRESX) invests the majority of its assets in the real estate sector and related investments. The fund purchases both domestic and foreign securities. It focusses on acquiring common stocks. The real-estate mutual fund returned 17.71% over the last one year period.

The real estate mutual fund has an expense ratio of 0.84% compared to a category average of 1.36%.

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.


View All Zacks #1 Ranked Mutual Funds

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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