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 real estate mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (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.
AMG Managers Real Estate Securities (MRESX – MF report) seeks capital growth over the long run with high income. It invests a lion’s share of its assets in real estate companies which may also include REITs. MRESX invests in companies that derives a minimum of half of its revenue from operations related to real estate sector or has more than half of its assets in this domain. MRESX is expected to maintain a portfolio of 40 to 60 stocks. The AMG Managers Real Estate Securities is a non-diversified fund and returned 14.3% over the last one year period.
As of March 2015, MRESX held 59 issues with 7.51% of its assets invested in Simon Property Group Inc.
Fidelity Series Real Estate Equity (FREDX – MF report) invests a major portion of its assets in companies throughout the globe that are involved in real estate industry. Factors including financial strength and economic condition are considered before investing in a company. FREDX is expected to provide higher return than that of the S&P 500 Index (SPY). The Fidelity Series Real Estate Equity is a non-diversified fund and returned 13.6% over the last one year period.
