For investors looking to park their money in the real-estate sector, mutual funds are the cheapest and most-convenient options. This category of funds offers solid protection against inflation.
The real-estate sector recently saw tough times but the presence of this investment vehicle generally adds stability to a portfolio. This is because volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns while significantly reducing the associated risk.
Below we share with you three top-ranked 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 invests majority of assets in equity securities of U.S. and foreign real estate-related investments. MGLAX has three-year annualized returns of 7.3%.
Richard R. Gable is the fund manager of MGLAX since 2009.
Cohen & Steers Real Estate Securities Fund, Inc. Class A CSEIX invests majority of assets in common stocks and other equity securities issued by real estate companies. The non-diversified fund aims for total return. It mostly invests in common stocks. CSEIX has returned 5.7% in the past three years.
As of the end of December 2020, CSEIX held 43 issues, with 6.88% of its assets invested in American Tower Corp.
TIAA-CREF Real Estate Securities Fund Retirement Class TRRSX seeks maximum total returns over the long run through growth of capital and current income. TRRSX invests a large chunk of its assets in companies primarily involved in operations related to the real estate domain. The fund may invest a maximum of 15% of its assets in securities issued by foreign entities. TRRSX has three-year annualized returns of 8.2%.
TRRSXcarries an expense ratio of 0.75% compared with the category average of 1.18%.
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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