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Wednesday, January 11, 2006
Real Estate Funds for the Long Haul?
Meg Richards of the Associated Press says "Analysts have been nervously writing yearend epitaphs for real estate for the last couple years, but the sector has kept outperforming the overall market. Despite worries that real estate funds are due for a breather after six strong years, smart investors are likely to hang on for the long haul." In making a case for a long-term position in real estate funds in this article from the San Jose Mercury News, Richards mentions that actively managed funds have outperformed index and exchange traded REIT funds, and she cites three Morningstar picks among mutual funds, including one no-load, the T. Rowe Price Real Estate Fund (TRREX), of which, she says "while wary of taking big bets, employs strong fundamental research and a long-term perspective that is likely to deliver the goods over time."