Investing in the real estate sector adds stability to one’s portfolio, mainly because volatility in property prices is far lower than what is experienced by stocks. So, investors willing to hold long-term positions would do well to consider real estate mutual funds as these add stability and bring in steady returns. This category of funds also offers superior protection against inflation.
Below we share with you three top-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 International Real Estate Fund (FIREX – Free Report) invests the majority of assets in common stocks of non-U.S. companies. The fund normally invests in securities of companies engaged in the real estate industry as well as other real estate related investments. FIREX has three-year annualized returns of 8.3%.
As of the end of March 2021, FIREX held 92 issues, with 6.32% of its assets invested in Vonovia SE.
Cohen & Steers Real Estate Securities Fund, Inc. Class A (CSEIX – Free Report) invests the majority of assets in common stocks and other equity securities issued by real estate companies. The non-diversified fund aims for total return. It mostly invests in common stocks. CSEIX has returned 12.3% in the past three years.
Jason Yablon is one of the fund managers of CSEIX since 2013.
TIAA-CREF Real Estate Securities Fund Retirement Class (TRRSX – Free Report) seeks maximum total returns over the long run through growth of capital and current income. TRRSX invests a large chunk of its assets in companies primarily involved in operations related to the real estate domain. The fund may invest a maximum of 15% of its assets in securities issued by foreign entities. TRRSX has three-year annualized returns of 13%.
TRRSX carries an expense ratio of 0.75% compared with the category average of 1.12%.
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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