Fund Spy

A Distinctive Approach to Real Estate Investing

David Kathman, CFA, Ph.D.
The following is our latest Fund Analyst Report for Fidelity Real Estate Income (FRIFX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days. 

Fidelity Real Estate Income's manager has continued to do a fine job of executing its distinctive strategy, helping the fund maintain its Morningstar Analyst Rating of Bronze.

This can be a tough fund to evaluate in many ways. Its historical returns appear to be all over the place at first glance; each year from 2007 through 2016, it ranked in either the bottom quartile or top quartile of the real estate Morningstar Category, including four years in the top decile and two years in the bottom decile. However, those numbers are misleading, because the fund's distinctive approach means that less than half of the portfolio is typically in real estate common stocks, so the real estate category isn't a very good basis for comparison.

David Kathman, CFA, Ph.D. does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.