Investing in the real estate sector adds stability to one’s portfolio, mainly because volatility in property prices is far less 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 and is a solid investment choice.
Below we share with you three top-rated real estate mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Cohen & Steers Real Estate Securities Fund, Inc. Class A CSEIX invests the majority of its assets in common stocks and other equity securities issued by real estate companies. The non-diversified fund aims for total return. CSEIX has three-year annualized returns of 4.6%. The fund carries a Zacks Mutual Fund Rank #1.
As of the end of September 2020, CSEIX held 47 issues, with 7.84% of its assets invested in Crown Castle International 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 6.6% and sports a Zacks Mutual Fund Rank #1.
David Copp is one of the fund managers of TRRSX since 2005.
John Hancock Funds II 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 fund invests in securities like common stocks, preferred stocks and convertible securities. It may invest a maximum of 10% of its assets in securities of companies domiciled outside the U.S. territory. This Zacks Mutual Fund Rank #2 fund has three-year annualized returns of 3.3%.
JIREX carries an expense ratio of 0.80% compared with the category average of 1.19%.
To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (JIREX): Fund Analysis Report
Get Your Free (TRRSX): Fund Analysis Report
Get Your Free (CSEIX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.