Investments in the real estate sector are primarily used as protection against inflationary pressures. Research has shown they perform better on this front compared to gold and other precious metals. Despite the difficult phase real estate has passed through recently, real estate investments also add stability to a portfolio. This is because the volatility in property prices is far less compared to the kind experienced by stocks over the longer term. Real estate mutual funds offer a cost effective method of holding these investments.
Below we will share with you the 5 best performing real estate mutual funds year to date. To view the Zacks Rank and past performance of all real estate funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Forward Strategic A | #1 Strong Buy | 20.6% |
| Neuberger Berman Real Estate | #1 Strong Buy | 18.7% |
| JP Morgan US Real Estate Fund A | #1 Strong Buy | 17.8% |
| Pioneer Real Estate Shares A | #1 Strong Buy | 17.5% |
| Natixis AEW Real Estate A | #1 Strong Buy | 16.9% |
Forward Strategic Realty A (KSRAX) seeks capital appreciation and current income. The majority of its assets are used to purchase real estate securities. These may be issued by real estate investment trusts or companies operating in the sector. The real estate mutual fund has a ten year annualized return of 5.9%.
The real estate mutual fund has a minimum initial investment of $4,000 and an expense ratio of 0.84% compared to a category average of 1.51%.
Neuberger Berman Real Estate (NBRFX) invests in equity securities issued by real estate investment trusts. It also invests in common stocks and other securities issued by companies from the real estate industry. It may utilize up to 20% of its assets to purchase debt securities. The real estate mutual fund has a five year annualized return of 3.82%.
The fund manager is Steve S. Shigekawa and he has managed this real estate mutual fund since 2005.
JPMorgan US Real Estate A (SUSIX) seeks current income and long-term capital growth. It 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. The real estate mutual fund returned 56.41% over the last one year period.
The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.85% compared to a category average of 1.51%.
Pioneer Real Estate A (PWREX) invests at least 80% of its assets in real estate investment trusts and companies. The fund purchases common stocks, convertible securities as well as exchange traded funds. The real estate mutual fund has a ten year annualized return of 9.45%.
As of July 2010, this real estate mutual fund held 42 issues, with 9.86% of its total assets invested in Simon Property Group, Inc.
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 rent of properties. The real estate mutual fund returned 53.52% over the last one year period.
Matthew A. Troxell is the Fund Manager and he has been managing this real estate mutual fund since 2000.
To view the Zacks Rank and past performance of all real estate mutual 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/
