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 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 majority of assets in equity securities of U.S. and foreign real estate-related investments. MGLAX has three-year annualized returns of 4.5%.
Richard R. Gable is the fund manager of MGLAX since 2009.
Cohen & Steers Real Estate Securities Fund, Inc. Class A (CSEIX – Free Report) invests 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 3.6% in the past three years.
As of the end of September 2020, CSEIX held 47 issues, with 7.84% of its assets invested in Crown Castle International Corp.
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 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 1.7%.
FRINX carries an expense ratio of 1.01% 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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