Mutual funds investing the real estate sector should definitely be part of portfolios with a long term horizon even though the sector has traversed rough waters in the recent past. Real estate mutual funds have delivered significantly high returns in the past and offer a convenient method for investing in this sector. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns to portfolios over the long term.
Below we will share with you the 5 best performing real estate mutual funds year to date. To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.
|Mutual Fund||Zacks Rank||Total Return YTD|
|CGM Realty HHaHh||#2 Buy||8.4%|
|Forward Real Estate Long/Short A||#2 Buy||8.4%|
|Forward Real Estate||#2 Buy||7.1%|
|Fidelity Real Estate Investment||#1 Strong Buy||6.7%|
|Managers Real Estate Securities||#1 Strong Buy||6.4%|
G. Kenneth Heebner is the Fund Manager and he has been managing this real estate mutual fund since 1994.
Forward Real Estate Long/Short A (NASDAQ:KSRAX – News) invests the majority of its assets in real estate securities. These may be issued by real estate investment trusts or companies operating in the sector. The fund may purchase securities issued form emerging markets. The real-estate mutual fund has a three year annualized return of 34.42%.
The real estate mutual fund has a minimum initial investment of $4,000 and an expense ratio of 1.60% compared to a category average of 1.39%.
Forward Real Estate A (NASDAQ:KREAX – News) seeks income with a secondary objective of capital growth. The fund invests a large share of its assets in companies from the real estate sector, without regard to their size. The real-estate mutual fund is non-diversified and has a three year annualized return of -2.03%.
Michael McGowan is the Fund Manager and he has been managing this real estate mutual fund since 2010.
Fidelity Real Estate Investment (NASDAQ:FRESX – News) invests the majority of its assets in real estate companies or other investments related to the sector. The fund is non-diversified and invests in both domestic and foreign securities. The real-estate mutual fund has a three year annualized return of 34.49%.
As of December 2011, this real estate mutual fund held 53 issues, with 9.19% of its total assets invested in Simon Property Group, Inc.
Managers Real Estate Securities (NASDAQ:MRESX – News) seeks capital gro0wth over the long term along with income. The fund utilizes a large proportion of its assets to purchase equity securities of companies from the real estate sector as well as real estate investment trusts. The real-estate mutual fund has a three year annualized return of 34.7%.
The real estate mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.41% compared to a category average of 1.39%.