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 steady returns. This category of funds also offers superior protection against inflation.
Below we share with you three top-rated real estate mutual funds, viz., MFS Global Real Estate Fund Class A MGLAX, TIAA-CREF Real Estate Securities Fund Retirement Class TRRSX and Fidelity Real Estate Investment Portfolio FRESX. 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 aims for total return. MGLAX mostly invests in equity securities of U.S. and foreign real estate-related investments. MFS Global Real Estate Fund Class A has three-year annualized returns of 13.8%.
As of the end of November 2021, MGLAX held 64 issues, with 7.33% of its assets invested in Prologis Inc.
TIAA-CREF Real Estate Securities Fund Retirement Class 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. TRRSX may invest a maximum of 15% of its assets in securities issued by foreign entities.
TIAA-CREF Real Estate Securities Fund Retirement Class has three-year annualized returns of 16%. David Copp is the fund manager of TRRSX since 2005.
Fidelity Real Estate Investment Portfolio fund aims for above-average income and long-term capital growth, consistent with reasonable investment risk. 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.
Fidelity Real Estate Investment Portfolio has three-year annualized returns of 10.9%. FRESX carries an expense ratio of 0.73% 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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