Potential Real Estate Mutual Funds to Add to Your Portfolio
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 4 potential real estate mutual funds. Each has earned a Zacks #2 Rank (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.
Columbia Real Estate Equity A (CREAX) seeks capital growth over the long run. The fund invests heavily in companies from real estate sector. It also invests in REITs. The fund focuses on acquiring securities such as common stocks and preferred stocks. The non-diversified real-estate mutual fund returned 24% over the last one year period.
The fund has an expense ratio of 1.28% as compared to category average of 1.34%.
Alpine International Real Estate Equity A (EGALX) invests a lion’s share of its assets in foreign companies involved in real estate sector or having real estate assets that constitutes at least half of its total assets. The fund invests in a minimum of three countries. The fund seeks long term capital appreciation. The real-estate mutual fund returned 4% over the last one year period.
Samuel A. Lieber is the fund manager and has managed this real estate mutual fund since 1989.
Principal Real Estate Securities A (PRRAX) seeks total return. The fund invests a major portion of its assets in companies involved in operations related to the real estate industry. It invests a minimum of 25% of its assets in real estate companies irrespective of their market capitalization. The fund may invest a significant share of its assets in a particular company. The non-diversified real-estate mutual fund returned 26.9% over the last one year period.
As of October 2014, this fund held 44 issues with 11.3% of its assets invested in Simon Property Group Inc.
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.
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