4 Promising Real Estate Mutual Funds To Consider

Real estate has been through tough times recently. However, 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 #1 Rank (Strong Buy) or 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 mutual funds, investors can click here to see the complete list of funds.

Voya Real Estate A (CLARX - MF report) seeks long term capital growth and current income. The fund invests a major portion of its assets in common and preferred stocks of U.S. REITs and real estate companies. The sub-adviser invests in companies with any market capitalization but doesn’t invest in companies having market-cap of less than $100 million during the time of purchase. The non-diversified real-estate mutual fund returned 19.6% over the last one year period.

The fund has an expense ratio of 1.29% as compared to category average of 1.32%.

Stratton Real Estate (STMDX - MF report) invests a lion’s share of its assets in securities of real estate companies or in companies having significant investment in real estate at the time of purchase such as Real Estate Investment Trusts. Its dollar-weighted average maturity lies between 0 to 10 years. The real-estate mutual fund returned 24.2% over the last one year period.

As of January 2015, this fund held 44 issues with 7.14% of its assets invested in Simon Property Group Inc

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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 ...

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