Investing in the real estate sector adds stability to a portfolio, mainly because volatility in property prices is far less than what is experienced by stocks. So, investors willing to hold long-term positions would do well to consider real estate mutual funds as they add stability and bring steady returns to a portfolio. This category of funds also offers superior protection against inflation and is a solid investment choice.
Below we share with you four 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 .
Artisan Mid Cap Fund Investor Class ARTMX aims for maximum long-term capital appreciation. The fund invests the majority of its assets in common stocks of medium-capitalization companies. According to the fund, a medium-capitalization company is the one that has market capitalization more than that of the smallest company in the Russell Midcap Index and less than thrice the weighted average market capitalization of organizations in it. ARTMX has three-year annualized returns of 15%.
ARTMX carries an expense ratio of 1.18% compared with the category average of 1.19%.
Brown Advisory Small-Cap Growth Fund Investor Shares BIASX aims for long-term capital growth by mostly investing in equity securities. The fund invests the majority of its assets in equity securities of small domestic companies. The fund invests in companies that the fund's advisor believes has more than average growth prospects. BIASX has three-year annualized returns of 16.3%.
As of March 2019, BIASX held 84 issues, with 4.09% of its assets invested in Waste Connections Inc.
Calvert Equity Fund Class A CSIEX primarily invests its assets in equity securities of companies with market capitalization ranked among the top 1000 U.S.-listed companies. The fund mostly aims for capital appreciation. CSIEX may also invest up to 25% of its assets in U.S. dollar-denominated securities of foreign companies that trade in the United States. CSIEX has three-year annualized returns of 18.1%.
Lance V. Garrison is one of the fund managers of CSIEX since 2015.
Lord Abbett Developing Growth Fund Class A LAGWX aims for capital appreciation by investing in an actively managed and diversified portfolio that comprises developing growth companies. In order to achieve its investment objective, the fund invests mostly in equity securities of companies the portfolio management team thinks demonstrate above-average, long-term growth potential.LAGWX has three-year annualized returns of 24.7%.
LAGWX carries an expense ratio of 0.93% compared with the category average of 1.20%.
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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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (BIASX): Fund Analysis Report Get Your Free (CSIEX): Fund Analysis Report Get Your Free (LAGWX): Fund Analysis Report Get Your Free (ARTMX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research