Markets

3 Strong Buy Real Estate Mutual Funds to Consider

Securities from the real estate sector remain an integral part of portfolios with a long-term horizon. Over the years, mutual funds from this category have continued to perform well. They offer a convenient method of investing in real estate because of low initial investment requirements and the advantage of professional management. Investors willing to hold long-term positions would do well to consider these funds as they add stability and bring steady returns to a portfolio.

Below we share with you three 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 .

Fidelity Real Estate IncomeFRIFX seeks above average income. FRIFX invests a large chunk of its assets in securities of real estate companies throughout the globe. FRIFX invest in a wide range of securities including common stocks, debt securities and mortgage-backed securities. FRIFX focuses on acquiring securities with non-investment grades. Fidelity Real Estate Income has returned 13.7% over the past one-year time frame.

Mark P. Snyderman is the portfolio manager of FRIFX since February 2003.

CGM RealtyCGMRX invests the lion's share of its assets in securities of companies within the real estate domain, irrespective of their market capitalization. CGMRX may invest not more than one-fifth of its assets in securities of companies from sectors other than real estate. CGMRX may also invest in debt securities throughout the wide range of credit qualities and maturities. CGMRX invests in securities of companies located all around the globe. CGM Realty has returned 20.3% over the past one-year time frame.

As of Sep 2016, CGMRX held 27 issues with 9.4% of its assets invested in Lennar Corp.

John Hancock II Real Estate Securities 1JIREX seeks appreciation of capital and income over the long-term. JIREX invests primarily in equity securities of companies engaged in operations related to real estate sector, which also include REITs. JIREX invests in securities including common stock, preferred stock and convertible securities. JIREX may invest a maximum of 10% of its assets in securities of companies domiciled outside the U.S. territory. John Hancock II Real Estate Securities 1 is a non-diversified fund and has returned 11.4% over the past one-year time frame.

JIREX has an expense ratio of 0.78% compared with the category average of 1.26%.

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


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

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