Zacks #1 Ranked Real Estate Mutual Funds

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 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.

Fidelity International Real Estate (FIREXMF report) seeks capital growth. The fund invests majority of its assets in foreign securities of real estate or related firms. Investments are parked after evaluating certain parameters. These include the company’s financial condition and its position in the industry relative to its peers. The non-diversified real-estate mutual fund returned 8.43% over the last one year period.

Guillermo de las Casas is the fund manager and has managed this real estate mutual fund since 2010.

VALIC Company I Global Real Estate (VGREXMF report) invests a lion’s share of its assets in companies involved in real estate and related activities. A maximum of 75% of assets can be invested in foreign securities, which may include securities from emerging markets. The real-estate mutual fund returned -0.23% over the last one year period.

The fund has an expense ratio of 0.89% as compared to category average of 1.44%.

Cohen & Steers International Realty A (IRFAXMF report) invests a large share of its assets in securities of foreign companies whose principal operations are related to the real estate sector. A maximum of 20% may also be invested in domestic companies related to the sector. The non-diversified fund returned 0.23% over the last one year period.

As of December 2013, this real estate mutual fund held 64 issues with 7.74% of its total assets invested in Mitsubishi Estate.

Fidelity Advisor Real Estate Income A (FRINXMF report) seeks appreciably high income as well as capital appreciation. The fund focuses on investing the lion’s share of its investments in the real estate sector and investments with linkages to the industry. The real-estate mutual fund returned 2.79% over the last one year period.

Mark P. Snyderman is the fund manager and has managed this real estate mutual fund since 2003.

JPMorgan International Realty A (JIRAXMF report) invests the majority of its assets in REITs and real estate companies. The company may consider investing in REITs with small market caps. A maximum of 20% is invested in debt securities which are denominated in foreign currency. The real-estate mutual fund returned -2.83% over the last one year period.

The fund has an expense ratio of 1.40% as compared to category average of 1.44%.

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.

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