Real Estate Mutual Funds
Although there are multiple real estate mutual funds available in domestic as well as international markets for investments in the real estate sector, some of the mutual funds are recommended by a few analysts and market experts.
Please note that investments in mutual funds is full of risk and past performance is not a guarantee for future. Investors should seeks professional advice on their own based upon their risk appetite. American Century Real Estate Inv Fund (REACX):
This is a specialized mutual fund with clear exposure to equity stocks focussing on real estate companies as well as investment trusts in the real estate sector.
This fund is unique in the sense that it seeks both regular income as well as long term capital growth.
Talking about the fund performance in the recent past, in the last one year the returns on this fund has been good. It has given investors a return on around 67% in 1 years timeframe.
CGM Realty Fund (CGMRX):
Willing to invest in real estate sector but dont want to bet all your money in real estate stocks, then the CGM Realty Fund is worth considering. This fund offers some small proportion of the capital (say 20% to 25%) in stocks and debt instruments of sectors other than real estate sector. Some capital may also be invested in other securities like the so called "Junk Bonds".
So this fund might suit those investors who are looking for a major (but not all) exposure to real estate sector and a minor investment in other sectors as well.
RiverSource Real Estate Fund (ARLAX):
This is another real state specific fund which has something unique. As any other real estate investment fund, it also invests in real estate company stocks and real estate investment trust stocks. Along with that, the unique thing about this fund is that it also invests in companies which in turn invest in real estate sector or companies.
Goldman Sachs Real Estate A Fund (GREAX):
This fund from Goldman Sachs offers both regular income as well as long term capital appreciation. It has eighty percent of its capital allocated for investments in real estate sector specific stocks. The annualized return for this fund is around 11%.
Neuberger Berman Real Estate Fund (NBRFX):
This real estate fund has a very low expense ratio as compared to the other similar real estate funds and that's what sets it apart. With only 0.99% expense ratio, this is low on charges. However, this fund requires a minimum investment of $1000. This fund has had a good performance in the past, it has generated more than 70% return in last 1 year
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