With the Dow Jones topping 16,000, more investors are looking to the stock market for new opportunities. Some are realizing that the economic recovery has begun to revitalize the real estate market as well as other parts of the economy. This is making real estate mutual funds attractive to savvy investors for the first time since the mortgage crash in 2007-2008.
Experts note that real estate is usually a good investment, in terms of mutual funds, because property prices are actually less volatile than general stock prices. This makes them a relatively stable investment and a number of analysts recommend that real estate funds be a part of any healthy, diversified portfolio.
Here are three of the top-rated real estate mutual funds:
VALIC Company I Global Real Estate is managed by Joe Rodriguez, Jr. It posted an 11.79% return over the last year. The fund is comprised almost entirely of companies involved in real estate activities. The fund has a 75% cap on the amount of assets that are invested in foreign rather than domestic securities.
ING International Real Estate A has been managed by Steven Burton since 2006. Over the last year, the fund had a 14.07% return. As with VALIC, ING’s fund focuses on real estate companies and companies engaged in real estate or real-estate related activities. The cap on this fund for foreign investment is 65%.
Forward Real Estate Long/Short A is a non-diversified fund that reported a 7.32% return for the last year. This fund focuses on long-term capital growth and includes investments in both real estate companies and REITs. The fund invests globally, including both frontier market and emerging nations.
A list of over 100 real estate funds can be found here.
As with any opportunity, investors should consult a qualified financial adviser and conduct due diligence before buying into any mutual fund or stock investment.
Nick Stuart is a financial blogger and analyst. He has been following the stock market for nearly thirty years. He enjoys explaining investment products, money mutual funds, and stock market trends to audiences all over the web.