Securities from the real estate sector continue to be an integral part of any portfolio with a long-term horizon. Over the years, mutual funds from this category have continued to perform favorably. They are a convenient way to invest in real estate because of their low initial investment requirements and the advantage of professional management. Investors willing to hold long-term positions would do well to consider these funds as they add stability and bring steady returns to a portfolio.

Below we will share with you three best rated real estate mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds .

SSgA Clarion Real Estate N (SSREX - MF report) seeks income and capital appreciation. SSREX invests a major portion of its assets in real estate investment trusts (REITs). SSREX may also invest not more than 20% of its assets in non-REIT securities that are issued by real estate companies and may also allocate a small portion of its assets in equity and fixed income securities of companies other than real estate firms. The SSgA Clarion Real Estate N is a non-diversified fund and has a three-year annualized return of 9.4%.

SSREX has an expense ratio of 1.00% as compared to the category average of 1.29%.

Davis Real Estate A (RPFRX - MF report) utilizes the Davis Investment Discipline to allocate a majority of its assets in securities of companies primarily involved in operations related to the real estate sector. Though RPFRX primarily invests in common stocks of companies located in the US, RPFRX may also invest in non-US companies, including depositary receipts. The Davis Real Estate A fund has a three-year annualized return of 7.7%.

As of December 2015, RPFRX held 50 issues, with 5.18% of its total assets invested in Boston Properties Inc.

Cohen & Steers Real Estate Securities A (CSEIX - MF report) seeks total return. CSEIX invests a large chunk of its assets in common stocks of companies whose operations are related to the real estate domain and REITs. CSEIX is expected to invest not more than 20% of its assets in non-U.S. companies including that from emerging economies. CSEIX may also invest in Depositary Receipts of different countries. The Cohen & Steers Real Estate Securities A is a non-diversified fund with a three-year annualized return of 11.6%.

CSEIX has an expense ratio of 1.23% as compared to the category average of 1.29%.