Mutual funds are the cheapest and most convenient option for investors looking to park their money in the real estate sector. This category of funds offers solid protection against inflation. Adding funds from the real-estate sector generally provides stability to a portfolio. This is because volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely diversified portfolio would increase returns while significantly reducing the associated risk.
Below we share with you three top-ranked real estate mutual funds, namely, TIAA-CREF Real Estate Securities Fund Retirement Class (TRRSX), Cohen & Steers Realty Shares Fund Class L (CSRSX) and DWS RREEF Real Estate Securities Fund – Class A (RRRAX). Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of real estate mutual funds.
TIAA-CREF Real Estate Securities Fund Retirement Class seeks capital appreciation and increase in current income. TRRSX invests the majority of its assets in equity securities of the real estate industry.
TIAA-CREF Real Estate Securities Fund Retirement Class has a three-year annualized return of 13.2%. As of September 2021, TRRSX held 62 issues with 6.33% of its assets invested in American Tower Corp.
Cohen & Steers Realty Shares Fund Class L invests the majority of its net assets in common stocks and other equity securities issued by real estate companies. CSRSX is non-diversified.
Cohen & Steers Realty Shares Fund Class L has a three-year annualized return of 12.9%. CSRSX has an expense ratio of 0.88% compared with the category average of 1.08%.
DWS RREEF Real Estate Securities Fund – Class A seeks long-term capital appreciation and current income. RRRAX invests the majority of its net assets in equity securities of real estate investment trusts and real estate companies.
DWS RREEF Real Estate Securities Fund – Class A has a three-year annualized return of 10.5%. John W. Vojticek has been one of the fund managers of RRRAX since 2004.
To view the Zacks Rank and the past performance of all real estate mutual funds, investors can click here to see the complete list of real estate mutual funds.
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