Real estate has weathered rough seas recently, but investments in this sector will continue to play a key role in a long-term portfolio strategy. With comparatively lower initial investment requirements and risk levels, real estate funds are a convenient way to invest in this sector. These funds either purchase or lease out property or hold securities backed by real estate. Investors with a long-term horizon would do well to consider them since they offer protection against inflation and bring stability to a portfolio.
Below we will share with you 5 top rated real estate funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all real estate funds, then click here.
ING Real Estate A (CLARX) seeks both income and long term capital growth. At least 80% of its assets are invested in domestic real estate investment trusts and companies with significant interests in the real estate sector. It is non-diversified and invests in convertible securities and IPOS. The real-estate fund returned 47.13% over the last one year period.
T. Ritson Ferguson is the fund manager and has managed this real estate fund since 1996.
JPMorgan US Real Estate Fund A (SUSIX) invests the majority of its assets in domestic real estate companies whose securities are traded publicly. At least 25% of its assets are invested in companies with interests in the real estate sector. It may also invest up to 20% of its assets in fixed income and government securities and cash equivalents. The fund has a ten year annualized return of 9.37%.
The real-estate fund has an expense ratio of 1.19% compared to a category average of 1.47%.
DWS RREEF Global Real Estate Securities A (RRGAX) seeks total return by investing the majority of its assets in the real estate sector worldwide. It looks to purchase stocks of real estate investment trusts and operating companies listed on exchanges globally. This real-estate fund returned 49.4% n 2009.
As of December 2009, this real-estate fund held 118 issues, with 5.93% of its total assets invested in Sun Hung Kai Properties, Ltd.
Cohen & Steers Realty Shares (CSRSX) invest the majority of its assets in equity securities of real estate companies. It invests in common and preferred stock, convertible securities and shares of real estate investment trusts. The real-estate fund returned 51.17% in 2009 and has a ten year annualized return of 10.48%.
The real-estate fund has a minimum initial investment of $10,000 and an expense ratio of 1.00% compared to a category average of 1.47%.
Natixis AEW Real Estate A (NRFAX) seeks capital appreciation and above average income. It invests heavily in shares of real estate investment trusts whose primary income is derived from the rent of properties. The real-estate fund returned 49.59% over the last one year period.
Matthew A. Troxell is the Fund Manager and he has managed this real estate fund since 2000.
To view the Zacks Rank and past performance of all real estate funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
