Printer Friendly

MONEY SMALL INVESTOR INDEX: SMALL INVESTORS RACE FOR REAL ESTATE

 /ADVANCE/ NEW YORK, Feb. 7 /PRNewswire/ -- Seeking solid yields and big capital gains, individual investors are pouring millions of dollars into mutual funds that buy real estate stocks, according to data gathered for Money magazine's Small Investor Index.
 The five real estate funds tracked by AMG Data Services of Arcata, Calif., were swamped with $86.4 million in fresh cash in January, up 159 percent from $33.3 million in December. The biggest beneficiary of this rush has been the Fidelity Real Estate Investment Portfolio, which took in a net $106 million over the past two months and now has $235 million in assets. The fund's assets have been growing twice as fast as the nine other funds in Fidelity's growth and income group.
 Real estate funds, which hold homebuilding stocks and real estate investment trusts, yield about 3 percent and offer the potential for double-digit annual price increases over the next three to five years. Homebuilding stocks have been particularly hot lately, with some issues climbing as much as 50 percent since mid-September. Reason: Investors have been expecting a strong rebound in housing demand as mortgage rates fall. Last week, rates on 30-year fixed-rate loans dropped below 8 percent.
 Money managers continue to recommend real estate issues but caution small investors to be selective. "The homebuilding stocks are up so much that they are in danger of peaking," says Allen Parker, manager of the U.S. Real Estate Fund in San Antonio. "But high-quality REITs that can raise their dividends are still likely to provide handsome gains."
 Last week, the typical individual investor's portfolio soared $478 to a record $45,903. Stocks gained $406, and bonds returned $55. Certificates of deposit and money-market funds contributed $10.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 101.93 100.86 94.72 +1.05% +7.61%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.43 +2.61% +11.90%
 ASE/OTC 104.71 +2.04 +11.16
 Equity funds 103.45 +2.20 +7.90
 Bonds:
 Taxable bonds 101.95 +0.21 +10.17
 Municipals 101.79 +0.80 +10.65
 Bond funds 101.96 +0.64 +8.78
 Cash:
 CDs 100.35 +0.07 +4.05
 Money funds 100.25 +0.05 +3.07
 Other:
 Real estate 101.07 +0.79 -8.59
 Gold 102.01 +1.86 -16.75
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.02% 23.40% Bond funds 6.68% 5.37%
 ASE/OTC 7.27 7.39 CDs 14.47 17.15
 Equity funds 6.56 5.24 Money funds 24.38 23.02
 Taxable bonds 8.79 9.82 Real estate 0.82 0.77
 Municipals 7.53 7.28 Gold 0.49 0.56
 Sources: Bank Rate Monitor, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Money Fund Report, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 2/8/93
 /NOTE TO EDITORS: This material is also available in printable form from AP GraphicsNet and Access services for graphics and tables (under the file name MoneyIndex) and from PR Newswire for full text./
 /CONTACT: Jordan Goodman of MONEY, 212-522-3618, or Patti Straus of MONEY public relations, 212-522-2695/


CO: ST: IN: SU: ECO

GK -- NY044 -- 3634 02/05/93 15:25 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 5, 1993
Words:586
Previous Article:JAPANESE DIRECT INVESTMENT IN THE MIDWEST INCREASED IN 1992
Next Article:DUFF & PHELPS RATES SALOMON INC SHELF
Topics:


Related Articles
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS CHASE RISKY JUNK BONDS
MONEY SMALL INVESTOR INDEX: INVESTORS TURN ON TO 6% UTILITIES
MONEY SMALL INVESTOR INDEX: INVESTORS RACK UP BEST PROFITS OF '92
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE BIGGER RISKS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS MAKE ONLY 7.9% IN 1992
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PROSPER FROM CLINTON RALLY
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS BET ON SMALL STOCKS
/REPEATING FROM FRIDAY, JUNE 4/
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS GAIN SINCE CLINTON'S ELECTION
MONEY SMALL INVESTOR INDEX: EARN LESS THAN 1% IN 1994

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters