Consider These 3 Real Estate Mutual Funds for a Steady Portfolio

For investors who want to park their money in the real estate sector, mutual funds are the cheapest and most convenient option. This fund category offers solid inflation protection.

The real estate sector has been going through tough times recently, but the presence of this investment vehicle generally gives stability to a portfolio. This is because the volatility of property prices is far less than that of stocks. Adding such funds to a broadly diversified portfolio would increase returns while significantly reducing the risk involved.

In the following, we would like to introduce you to three first-class mutual real estate funds. Everyone has earned a Zacks Mutual Fund Rank # 1 (Strong Buy) and is expected to outperform their competitors in the future. Investors can click here for the full list of funds.

Fidelity Real Estate Income Fund FRIFX aims for above average income, while capital growth is a secondary goal. The Fund invests the majority of its assets in preferred and common stocks of REITs, real estate company debt, and commercial and other mortgage-backed securities. FRIFX has an annualized three year return of 9.1%.

William Maclay has been one of FRIFX’s fund managers since 2019.

TIAA-CREF Real Estate Securities Fund bond class TRRSX aims to achieve maximum total returns over the long term through capital growth and current income. TRRSX invests a large part of its assets in companies that are primarily active in the real estate sector. The fund may invest a maximum of 15% of its assets in securities from foreign issuers. TRRSX has an annualized three-year return of 14.7%.

At the end of May 2021, TRRSX held 73 issues, with 6.24% of its assets in American Tower Corp. were invested.

Fidelity real estate investment portfolio The FRESX fund aims to achieve above-average income and long-term capital growth that is compatible with a reasonable investment risk. This nondiversified fund invests primarily in common stocks. The majority of FRESX’s assets are invested in the securities of companies primarily active in the real estate industry and in other real estate-related investments. FRESX has an annualized three-year return of 9.8%.

The story goes on

FRESX has an expense ratio of 0.74% compared to the category average of 1.08%.

To view the Zacks rank and past performance of all property funds, investors can click here for the full list of funds.

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