Top 5 Best Performing Real Estate Mutual Funds - Best Performing Funds Year To Date

Mutual funds investing the real estate sector should be a necessary addition to portfolios with a long term horizon even though the sector has traversed rough waters in the recent past. Real estate mutual funds have delivered significantly high returns in the past and offer a convenient method for investing in this sector. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns to portfolios over the long term.

Below we will share with you the 5 best performing real estate mutual funds year to date. To view the Zacks Rank and past performance of all real estate funds, then click here.

American Century Real Estate ( REACX) seeks current income and capital growth. The fund invests a large proportion of its assets in real estate investment trusts and companies from the sector. The fund focuses on acquiring common and preferred stock and related convertible securities. The real-estate mutual fund has a ten year annualized return of 9.59%.

Steven R. Brown is the Fund Manager and he has been managing this real estate mutual fund since 2008.

GMO Real Estate III (GMORX) invests the majority of its assets in real estate investment trusts and related investments. The fund seeks to provide returns in excess of its benchmark, the MSCI U.S. REIT Index. The real-estate mutual fund is non-diversified and has a three year annualized return of 2.63%.

The real estate mutual fund has an expense ratio of 0.48% compared to a category average of 1.45%.

Delaware Real Estate Investment Trust II (DPRTX) seeks total return with a secondary objective of capital growth. A large proportion of the fund's assets are used to purchase equity securities issued by real estate investment trusts and companies. The real estate mutual fund returned 18.1% over the last one year period.

Babak J. Zenouzi is the Fund Manager and he has been managing this real estate mutual fund since 2006.

Delaware REIT A (DPREX) invests at least 80% of its assets in real estate investment trusts. The fund also invests a substantial portion of its assets in securities issued by firms from the real estate sector. The real-estate mutual fund has a ten year annualized return of 9.02%.

As of August 2011, this real estate mutual fund held 51 issues, with 11.13% of its total assets invested in Simon Property Group, Inc.

Franklin Real Estate Securities A (FREEX) seeks total return. The fund invests heavily in equity securities of real estate firms. Not more than 20% of its assets may be utilized to purchase equity and debt securities of companies which manufacture products or deliver services with clear affinity to the real estate sector. The real estate mutual fund returned 18.63% over the last one year period.

The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.18% compared to a category average of 1.45%.

To view the Zacks Rank and past performance of all real estate mutual funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.