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Zacks #1 Ranked Real Estate Mutual Funds

Abhijit Ghosh

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 rated real estate mutual funds. Each has earned a Zacks #1 Rank (Strong 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.

MFS Global Real Estate A (MGLAX) invests largely in both domestic and foreign investments related to real estate. It mainly focuses on acquiring equities of companies irrespective of their market capitalizations. It may invest a significant portion of nits assets in a particular country or region. The non-diversified real-estate mutual fund returned 10.61% over the last one year period.

The fund has an expense ratio of 1.22% as compared to category average of 1.42%.

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AMG Managers Real Estate Securities (MRESX) seeks capital growth over long run with high income. It invests a lion’s share of its assets in real estate companies which may also include REITs. It generally has a holding of around 40 to 60 stocks. The non-diversified real-estate mutual fund returned 10.67% over the last one year period.

Eric Rothman is the fund manager and has managed this real estate mutual fund since 2006.

Fidelity Series Real Estate Equity (FREDX) invests a major portion of its assets in firms whose primary operations are related to the real estate sector. It invests in both U.S. and non U.S. companies depending on some factors such as financial strength and economic condition. The non-diversified real-estate mutual fund returned 9.63% over the last one year period.

As of May 2014, this fund held 45 issues with 12.56% of its assets invested in Simon Property Group Inc.

Stratton Real Estate (STMDX) seeks total return. It invests majority of its assets in firms which are related to real estate domain or have real estate assets. It may also invest in REITs. It generally maintains a dollar-weighted average maturity of 0 to 10 years. The real-estate mutual fund returned 9.50% over the last one year period.

The fund has an expense ratio of 0.97% as compared to category average of 1.22%.

Nuveen Real Estate Securities A (FREAX) invests a large portion of its assets in real estate firms. It focuses on acquiring equities of REITs and may invest in REITs of all kind. It may invest a maximum of 15% of its assets in foreign companies including those from emerging economies. The real-estate mutual fund returned 10.35% over the last one year period.

John G. Wenker is the fund manager and has managed this real estate mutual fund since 1999.

To view the Zacks Rank and past performance of all real estate mutual funds, investors can click here to see the complete list of funds.

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.


Read the analyst report on MGLAX

Read the analyst report on MRESX

Read the analyst report on FREDX

Read the analyst report on STMDX

Read the analyst report on FREAX


View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research