For investors looking to park their funds in the real estate sector, mutual funds are the cheapest and most convenient method. This category of funds also offers superior protection against inflation. The real estate sector has seen tough times recently, but the presence of these investments generally adds stability to a portfolio. This is because the volatility in property prices is far less compared to the kind experienced by stocks. Adding such funds to a widely diversified portfolio would increase returns while reducing the associated risk significantly.
Alpine Realty Income & Growth Fund A (MUTF:AIAGX) seeks current income. AIAGX invests the majority of its assets in securities of issuers involved in the real estate industry, real estate financing or controlling real estate assets not less than half of such issuer's assets. AIAGX may invest a maximum 35% of its assets in securities of foreign issuers. The Alpine Realty Income & Growth Fund A is a non-diversified fund with a three-year annualized return of 7.5%.
Robert W. Gadsden is the portfolio manager and he has been managing AIAGX since 1999.
Cohen & Steers Real Estate Securities Fund Inc. C (MUTF:CSCIX) invests a large chunk of its assets in common stocks of companies whose operations are related to the real estate domain and REITs. CSCIX is expected to invest not more than 20% of its assets in non-U.S. companies, including those from the emerging economies. CSCIX may also invest in Depositary Receipts of different countries. The Cohen & Steers Real Estate Securities Fund Inc. C is a non-diversified fund with a three-year annualized return of 10.1%.
As of December 2015, CSCIX held 41 issues, with 10.28% of its total assets invested in Simon Property Group Inc. (NYSE:SPG)
T. Rowe Price Real Estate Fund (MUTF:TRREX) seeks growth over the long term. TRREX invests a major portion of its assets in equity securities of real estate companies. TRREX invests mostly in equity real estate investment trusts. TRREX may invest a maximum 25% of its assets in foreign securities. TRREX offers dividends quarterly in March, June, September and December. Capital gains are offered in December. The T. Rowe Price Real Estate Fund has a three-year annualized return of 9.1%.
TRREX has an expense ratio of 0.76% as compared to the category average of 1.29%.