For most investors, investing directly in the real estate sector may appear to be an exorbitant proposition. Mutual funds are one of the most convenient and cost effective methods of investing in this industry. This category of funds also offers significant protection against inflationary pressures. In fact, several studies have shown that real estate funds deliver better results on this count compared to precious metals. The presence of funds from this category in a well diversified portfolio ensures higher returns while reducing the risk factor as a whole.
Below we will share with you the 5 best performing real estate mutual funds year to date.
|Mutual Fund||Zacks Rank||Total Return YTD|
|Forward Strategic Realty A||#1 Strong Buy||24.2%|
|ProFunds Real Estate Ultra Sector||#1 Strong Buy||22.9%|
|Neuberger Berman Real Estate||#1 Strong Buy||22.8%|
|JP Morgan US Real Estate Fund A||#1 Strong Buy||21.0%|
|Morgan Stanley Real Estate A||#1 Strong Buy||20.8%|
The real estate mutual fund has a minimum initial investment of $4,000 and an expense ratio of 0.84% compared to a category average of 1.50%.
ProFunds Real Estate UltraSector (REPSX) invests at least 80% of its assets in equity securities which are included in the Dow Jones U.S. Real Estate index. The fund may also purchase securities which are identical in nature and may utilize sample techniques to meet its objectives. The real estate mutual fund returned 37.3% over the last one year period.
The fund manager is Michael S. Neches and he has managed this real estate mutual fund since 2009.
Neuberger Berman Real Estate (NBRFX) invests in equity securities issued by real estate investment trusts. It also invests in common stocks and other securities issued by companies from the real estate industry. The real estate mutual fund has a five year annualized return of 5.32%.
As of August 2010, this real estate mutual fund held 42 issues, with 8.85% of its total assets invested in Simon Property Group, Inc.
JPMorgan US Real Estate A (SUSIX) seeks current income and long-term capital growth. It invests the majority of its assets in domestic real estate companies whose securities are traded publicly. The real estate mutual fund returned 32.66% over the last one year period.
The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.85% compared to a category average of 1.51%.
Morgan Stanley Real Estate A (REFAX) seeks capital growth over the long term and current income. The fund invests heavily in common stocks of companies form the domestic real estate sector. The real estate mutual fund is non-diversified and has a ten year annualized return of 10.42%.
Theodore R. Bigman is the Fund Manager and he has been managing this real estate mutual fund since 1999.
To view the Zacks Rank and past performance of all real estate mutual funds, then click here.