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 peers in the future. Investors can click here to see the complete list of funds.
Fidelity International Real Estate Fund (FIREX – Free Report) invests 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 January 2021, FIREX held 87 issues, with 6% of its assets invested in Vonovia SE.
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 8% in the past three years.
Thomas N. Bohjalian is one of the fund managers of CSEIX since 2005.
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 5.7%.
FRINX carries an expense ratio of 1.01% compared with the category average of 1.18%.
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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