Global Real Estate
  • Global real estate no load mutual funds invest in real estate, both indirectly and directly, all across the globe
  • Global real estate offers great return potential but there are some risks involved as well
  • Some investors consider global real estate funds some of the best no load funds around

What are global real estate no load mutual funds, and what benefits and drawbacks do these funds have? Global real estate funds are mutual funds which hold investments in companies that make earnings from real estate or that hold a large amount of real estate around the globe. These funds can be found in two types: no load mutual funds and load mutual funds. The difference between the two can be significant. Load funds charge a load fee, which is normally between five and eight percent, and these fees can add up quickly. The load can be a front load charge, a back load charge, or a continuous charge as long as the investment is held. The load fee is charged to pay the broker for the professional investment advice given. With no load mutual funds there is no load fee, but also no professional advice. This is not a bad thing though, because some brokers will receive a commission from the investors and then one from the global real estate funds chosen as well. At times this can lead to investment advice that is not right for you and your specific circumstances. The broker may direct investors into funds which pay higher commissions, instead of funds which are the best for the investor. No load mutual funds will eliminate these issues, because the investor will do all of the research, fund comparisons and evaluations, and make all of the investment decisions.

Global real estate mutual funds are considered some of the best no load funds around for some investors, but these funds carry varying degrees of risk and are not for all investors. The investments held by global real estate funds can be very varied, and can include anything that is even remotely or indirectly related to real estate. These investments can include real estate trusts, home building companies, construction companies, building materials suppliers, and many other company types which are involved in some way in real estate or building. To be well diversified, every investment portfolio should include global real estate in some amount. The specific percentage of the portfolio that should involve global real estate funds is up to the individual investor, and will depend in the specific acceptable risks, the investment goals, and the strategies used.

One of the best no load funds that invests in global real estate is the Morgan Stanley Real Estate I Fund, which trades under the symbol REFDX. This fund carries the quality Morgan Stanley name and a four star Morningstar rating, making it one of the best for most investors. Theodore R. Bigman has been the lead manager for the fund for almost ten years, since the year 1999. This is one of the true no load funds, with no marketing or load fees, but the initial minimum investment required is high at five million dollars. This is considered one of the best institutional global real estate no load mutual funds to invest in. The T. Rowe Price Real Estate Advisor Fund, trading under the symbol PAREX, is another one of the best no load funds when it comes to global real estate funds, and this one is ideal for many individual investors. T. Rowe Price offers this fund, and the Morningstar rating is only three stars. One of the reasons for this is that this specific global real estate fund only invests around twenty percent of the fund assets in the global real estate market, and the rest is used for investing in real estate in the US. The fund is managed by David M. Lee, and has net assets worth over thirty six million dollars.