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, viz., JHancock Real Estate Securities Fund Class 1 ( JIREX - Free Report) , MFS Global Real Estate Fund Class A ( MGLAX - Free Report) and Manning Napier Real Estate Series Class S ( MNREX - Free Report) . Each has earned 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 funds.
JHancock Real Estate Securities Fund Class 1 seeks appreciation of capital and current income over the long term. JIREX invests primarily in the equity securities of companies engaged in operations related to the real estate sector, which includes REITs. JHancock Real Estate Securities Fund Class 1 invests in securities like common stocks, preferred stocks and convertible securities.
JHancock Real Estate Securities Fund Class 1 has a three-year annualized return of 21.4%. JIREX carries an expense ratio of 0.82% compared with the category average of 1.08%.
MFS Global Real Estate Fund Class A aims for total return. MGLAX mostly invests in equity securities of U.S. and foreign real estate-related investments. MFS Global Real Estate Fund Class A has three-year annualized returns of 18.5%.
As of the end of December 2021, MGLAX held 62 issues, with 7.65% of its assets invested in Prologis Inc.
Manning Napier Real Estate Series Class S aims for high current income and long-term capital growth by investing primarily in companies in the real estate industry. MNREX invests at least 80% of its assets in securities of companies that are directly engaged in the real estate industry as well as in industries serving or related to the real estate industry.
Manning Napier Real Estate Series Class S has three-year annualized returns of 20.2%. Elizabeth H. Mallette has been one of the fund managers of MNREX since 2013.
To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.
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