Investing in the real estate sector adds stability to the portfolio, mainly because the volatility of real estate prices is much lower than that of stocks. Thus, investors looking to maintain long-term positions should consider using mutual funds in the real estate industry, as they add stability and generate stable returns. This category of funds also offers excellent inflation protection.
Below we highlight three of the top rated real estate mutual funds. Each has been rated # 1 by the Zacks Mutual Fund (Strong Buy) and is expected to outperform its competitors in the future. Investors can click here to see a complete list of funds.
Fidelity International Real Estate Fund FIREX invests most of its assets in common stock of non-US companies. The fund usually invests in securities of real estate companies, as well as in other investments related to real estate. FIREX has a three-year annualized rate of return of 10.7%.
As of the end of May 2021, FIREX carried out 91 issues, with 6.11% of assets invested in Vonovia SE.
Manning & Napier Estate Series S Class MNREX is committed to high operating income and long-term capital growth by investing primarily in real estate companies. The fund invests at least 80% of its assets in the securities of companies that are mainly engaged in real estate. MNREX has a three-year annualized return of 10.7%.
Elizabeth H. Mallett has been one of the MNREX Fund Managers since 2013.
Pension class TIAA-CREF Real Estate Securities Fund TRRSX seeks to maximize overall long-term profitability through capital growth and current income. TRRSX invests a significant portion of its assets in companies that are primarily engaged in real estate related activities. The fund can invest no more than 15% of its assets in securities issued by foreign organizations. TRRSX has a 3-year annualized return of 15%.
TRRSX has an expense ratio of 0.75% compared to the category average of 1.11%.
To view the Zacks ranking and past performance of all real estate funds, investors can click here to see a complete list of funds.
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