Earlier this week, Prudential Investments, the mutual fund unit of Prudential Financial Inc. (PRU), announced the offering of two new mutual funds related to real estate.
The new funds, named Prudential U.S. Real Estate Fund and the Prudential International Real Estate Fund, will be a part of the existing Prudential Global Real Estate Fund and help the investors to focus on specific markets.
Prudential U.S. Real Estate Fund will invest approximately 80% of the total fund in equity securities of U.S. based real estate companies, primarily real estate investment trusts (REITs) and other real estate securities.
On the other hand, Prudential International Real Estate Fund will invest nearly 80% of the total fund in equity securities of non- U.S. based real estate companies, principally REITs and other real estate securities located outside the U.S. These will also include non-U.S. issuers located in emerging markets.
Prudential Global Real Estate Fund carried Morningstar Overall Rating out of 126 Global Real Estate funds as of February 2011. The Fund seeks to provide capital appreciation and income by investing primarily in domestic and international real estate securities. These funds provide retail investors an opportunity to reap benefits by investing in large high quality portfolios of real estate.
Since returns from investment in real estate has historically provided inflation adjusted returns, these kinds of mutual funds are worth investing in. Besides, they also provide diversification benefits.
Other comparable real estate mutual funds are American Beacon Global Real Estate offered by American Beacon Advisors, Principal Global Real Estate offered by Principal Global Investors, and Franklin Global Real Estate Fund provided by Franklin Templeton Investments of Franklin Resources Inc. (BEN).
FRANKLIN RESOUR (BEN): Free Stock Analysis Report
PRUDENTIAL FINL (PRU): Free Stock Analysis Report
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