Markets

4 Strong Perfoming Real Estate Mutual Funds to Invest In - Mutual Fund Commentary

Even though real estate has been through tough times recently, securities from this sector should continue to be an integral part of portfolios with a long term horizon. Over the years, mutual funds from this category have continued to perform favorably. They offer a convenient method to invest 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 will share with you 4 potential real estate mutual funds . Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (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 .

Fidelity Series Real Estate Equity (FREDX) invests a lion's share of its assets in firms whose primary operations are related to the real estate sector. It invests in both U.S. and non U.S. companies depending on factors such as financial strength and economic condition. It seeks long term capital appreciation and aims to provide yields more than the collective yield of the S&P 500. The non-diversified real-estate mutual fund returned 29.2% over the last one year period.

Samuel Wald is the fund manager and has managed this real estate mutual fund since 2011.

T. Rowe Price Real Estate (TRREX) seeks capital appreciation over the long run with growth in current income. The fund invests a majority of its assets in companies from the real estate domain. It also allocates a notable share of its assets in real estate investment trusts (REITs), including equity REITs and mortgage REITs. The fund may also invest in non-U.S. firms. The real-estate mutual fund returned 28.1% over the last one year period.

The fund has an expense ratio of 0.79% as compared to category average of 1.32%.

Nuveen Real Estate Securities A (FREAX) invests a large portion of its assets in common stocks of companies related to the real estate industry. It primarily invests in equity REITs. It also invests in all three types of REITs. It may also invest a maximum 15% of its assets in non-dollar denominated equity securities of foreign issuers. A maximum of 15% of the fund's assets are invested in equities of emerging markets issuers. The real-estate mutual fund returned 27.8% over the last one year period.

As of December 2014, this fund held 128 issues with 8.9% of its assets invested in Simon Property Group Inc

Oppenheimer Real Estate A (OREAX) invests heavily in common stocks of real estate companies. A real estate company is one that derives at least half of its revenue or invests at least half of its assets in the ownership, construction, financing, management or sale of commercial, industrial or residential real estate. It generally invests in REITs, REOCs and other securities related to real estate. The non-diversified real-estate mutual fund returned 30% over the last one year period.

Scott Westphal is the fund manager and has managed this real estate mutual fund since 2002.

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 www.zacks.com/funds/mutual-funds .

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 (FREDX): Fund Analysis Report

Get Your Free (TRREX): Fund Analysis Report

Get Your Free (FREAX): Fund Analysis Report

Get Your Free (OREAX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

FREAX FREDX OREAX TRREX

Other Topics

Mutual Funds

Latest Markets Videos