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5 Best-Rated Real Estate Mutual Funds to Bet On

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.

Alpine Realty Income & Growth A (AIAGX) seeks high current income. It invests majority of its assets in companies which are involved in real estate sector including financing and controlling assets of real estate companies. It invests a maximum of 35% of its assets in non-U.S. firms. The non-diversified real estate mutual fund returned 16.2% over the last one year period.

The fund has an expense ratio of 1.67% as compared to category average of 1.32%.

Goldman Sachs Real Estate Service (GRESX) invests a lion’s share of its assets in real estate companies. It may invest a maximum of 20% of its assets in fixed income securities including government and corporate debt instruments. The fund seeks total return with capital appreciation and dividend income over the long run. The non-diversified real-estate mutual fund returned 14.6% over the last one year period.

Nora Creedon is the fund manager and has managed this real estate mutual fund since 2010.

PIMCO Real Estate Real Return Strategy A (PETAX) seeks to provide maximum real return. The fund invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. It also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. The non-diversified real-estate mutual fund returned 20.7% over the last one year period.

As of March 2014, this fund held 306 issues with 18.8% of its assets invested in Trs 1ml+45/Dwrtft Index Brc.

JPMorgan Realty Income A (URTAX) invests largely in equities of REITs irrespective of their market capitalizations. The fund may consider both equity REITs and mortgage REITs for investment. It may invest a maximum of 15% of its assets in illiquid securities. The non-diversified real-estate mutual fund returned 14.1% over the last one year period.

The fund has an expense ratio of 1.18% as compared to category average of 1.32%.

VY Clarion Global Real Estate A (ICRNX) seeks total return through capital growth and current income. The fund invests major portion of its assets in companies whose operations are related to the real estate industry. It invests in companies through out the globe including those from emerging nations. The fund may also invest in other securities such as ETFs, IPOs and convertible securities. The real-estate mutual fund returned 9.4% over the last one year period.

As of June 2014, this fund held 113 issues with 3.73% of its assets invested in Mitsui Fudosan Co Ltd.

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 in our Mutual Fund Center.


Read the analyst report on AIAGX

Read the analyst report on GRESX

Read the analyst report on PETAX

Read the analyst report on URTAX

Read the analyst report on ICRNX


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