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.
MFS Global Real Estate Fund Class A MGLAX aims for total return. The fund mostly invests in equity securities of U.S. and foreign real estate-related investments. It has three-year annualized returns of 12.1%.
As of the end of September 2021, FIREX held 63 issues, with 6.28% of its assets invested in Prologis Inc.
JHancock Real Estate Securities Fund Class 1 JIREX seeks appreciation of capital and current income over the long term. JIREX invests primarily in the equity securities of companies engaged in operations related to the real estate sector, which includes REITs. The non-diversified fund invests in securities like common stocks, preferred stocks and convertible securities. JIREX has a three-year annualized return of 13.1%.
Bradford S. Stoesser is the fund manager of JIREX since 2020.
Fidelity Real Estate Investment Portfolio FRESX fund aims for above-average income and long-term capital growth, which is consistent with reasonable investment risk. This non-diversified fund invests primarily in common stocks. The majority of FRESX’s assets are invested in securities of companies principally engaged in the real estate industry and other real estate-related investments. FRESX has three-year annualized returns of 9.9%.
FRESX carries an expense ratio of 0.74% compared with the category average of 1.08%.
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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