3 real estate mutual funds essential for a stable portfolio


Mutual funds are the cheapest and most convenient option for investors looking to park their money in the real estate industry. This category of funds offers strong protection against inflation. Adding funds from the real estate sector generally ensures the stability of a portfolio. This is because the volatility of real estate prices is much lower than that of stocks. Adding such funds to a broadly diversified portfolio would increase returns while significantly reducing associated risk.

Below, we share with you three top-ranked real estate mutual funds. Each of them has achieved the # 1 Zacks mutual fund ranking (strong buy) and are expected to outperform their peers in the future. Investors can click here to view the full list of funds.

Fidelity Real Estate Income Fund FRIFX aims for above average income, while capital growth is a secondary objective. The fund invests the majority of its assets in preferred and common stocks of REITs, debt securities of real estate entities, and commercial and other mortgage-backed securities. FRIFX has three-year annualized returns of 9.3%.

FRIFX has an expense ratio of 0.73% compared to the category average of 1.08%.

TIAA-CREF Retirement Category Real Estate Securities Funds TRRSX seeks maximum long-term total returns through capital growth and current income. TRRSX invests a large part of its assets in companies mainly involved in transactions related to real estate. The fund may invest up to 15% of its assets in securities issued by foreign entities. TRRSX has three-year annualized returns of 15.5%.

At the end of July 2021, TRRSX held 71 issues, with 6.62% of its assets invested in American Tower Corp.

Manning & Napier Real Estate Series S Class MNREX aims for high current income and long-term capital growth by investing primarily in companies in the real estate industry. The fund invests at least 80% of its assets in securities of companies directly active in the real estate sector as well as in sectors serving or linked to the real estate sector. The MNREX shows three-year annualized returns of 12.3%.

Elizabeth H. Mallette has been one of the MNREX fund managers since 2013.

To view the Zacks Rankings and past performance of all real estate funds, investors can click here to view the full fund list.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Eleanor Blackburn

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