For investors looking to park their money in the real-estate sector, mutual funds are the cheapest and most-convenient options. This category of funds offers solid protection against inflation.
The real-estate sector recently saw tough times but the presence of this investment vehicle generally adds stability to a portfolio. This is because volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns while significantly reducing the associated risk.
Below we share with you three top-ranked 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.
MFS Global Real Estate Fund Class A (MGLAX – Free Report) aims for total return. The fund invests the majority of assets in equity securities of U.S. and foreign real estate-related investments. MGLAX has three-year annualized returns of 10.5%.
Richard R. Gable is the fund manager of MGLAX since 2009.
Fidelity Advisor Real Estate Income Fund Class A (FRINX – Free Report) aims for higher-than-average income. As a secondary objective, the fund seeks capital growth. FRINX invests the majority of assets in common stocks of REITs as well as securities of companies principally engaged in the real estate industry and other real estate-related investments. FRINX has three-year annualized returns of 4.8%.
As of the end of January 2021, FRINX held 489 issues, with 3.05% of its assets invested in American Tower Corp.
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 1.19%.
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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