ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Mutual funds that invest in real estate

Updated on August 20, 2015

Real estate investing through mutual funds

When most people think of investing in real estate they think of homes apartments, even vacant land, most people do not think of owning it in their 401K. A good percentage of Americans do invest in real estate they own homes.

Most Americans are not only investing in their homes they are highly leveraged. Most people are carrying mortgages on their home near or even above their homes value. Some people do not realize it but they already have quite an investment in real estate.

I am not normally an investor in real estate funds because of home ownership. I believe very strongly in diversity of assets. I am also a contrarian investor who believes the time to buy is when seemingly every one is selling. As I drive around I see empty homes by the score, empty store fronts, and closed factories. Many homes are selling at values they sold at 25 years ago. In the middle of economic despair is it time to invest in real estate?  

Buying a home at a low price, fixing it up and renting it out can be a very nice way to produce an income stream. This has worked for a number of investors but how many investments call you up at three in the morning and tell you the toilet is overflowing?

Buying vacant land can be a great investment however the investor is still going to need to pay taxes on the property.

Grow your investments

Real estate can be a fine investment!
Real estate can be a fine investment!

Mutual funds that invest in real estate

While there are a lot of very effective ways to make money on real estate, the balance of this article is about mutual funds which invest in real estate. There are several types of mutual funds which invest in real estate.

Traditional open end mutual funds

There are a number of open end mutual funds which invest in real estate. One can google “real estate funds” and find a host of funds investing in real estate. One fund I would like to look at is the CGM Realty fund symbol CGMRX. This fund has gained 19.32 percent per year over the past ten years and gained over 34 percent in 2009. This fund invests primarily in Real Estate Investment Trusts also known by the acronym REITS. This five star rated fund may well be a good addition to your portfolio.

Looking at the fund picks from Fidelity for real estate mutual funds only two funds show up. Guess what they are both Fidelity funds! The Fidelity Real Estate Income Fund symbol FRIFX is a five star rated fund. This fund is more diversified than the CGM fund and invests in convertible bonds, preferred stocks as well as bonds in addition to Real Estate Investment Trusts. This fund was up almost 46 percent in 2009.

Exchange Traded Funds

There are a host of Exchange Traded Funds investing in real estate.

A list includes:

Fund symbol RWX. This fund seeks to replicate the price and yield performance of Dow Jones Global ex-US Select Real Estate Securities index.

Fund symbol IYR. This fund is the same as RWX but for United States market.

Fund symbol VNQ. This fund trades as a basket of Real Estate Investment Trusts.

Fund symbol DRN. This fund seeks to move up or down at a rate three times the MSCI US REIT Index.

There are many more Exchange Traded Funds investing in the real estate area, do your homework and find one right for you if you choose to invest in this area.

Closed end funds

Lastly I want to mention closed end funds. There are a number of closed end funds which are real estate investment vehicles. The Cohen & Steers REIT & Preferred Income Fund symbol RNP invests in a mix of Real Estate Investment Trusts and bonds. This fund was up 91 percent in 2009. I own this fund and and have been pleased with it. The Cohen & Steers REIT & Preferred Income Fund pays a nice quarterly dividend for those of you wishing to develop an income stream.

As with Exchange Traded Funds there are many closed end funds in the real estate arena.

There are many ways to invest in the real estate market more than could be covered here. Wise real estate investing has the potential to yield very handsome returns in the coming years.

Regardless if you investing in your IRA, 401K or outside of a retirement vehicle choose your investments wisely. Keep a good asset allocation in your portfolio. When investing in mutual funds invest in the best funds available.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)