Is the T. Rowe Price Blue Chip Growth Fund (TRBCX) a great choice for mutual funds right now?
IIf you’re looking for the fund category of the mutual fund stocks report, T. Rowe Price Blue Chip Growth Fund (TRBCX) might be a potential place to start. TRBCX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors such as size, cost and past performance.
Fund History / Manager
TRBCX is part of the T. Rowe Price family, based in Baltimore, MD. Since the T. Rowe Price Blue Chip Growth Fund debuted in June 1993, TRBCX has garnered over $ 59.90 billion in assets. Larry J. Puglia is the current fund manager and has held this position since June 1993.
Obviously, what investors are looking for in these funds is a strong performance relative to their peers. TRBCX has a 5-year total annualized return of 24.06% and is in the top third of its class. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 25.52%, which puts it in the middle third over that time frame.
When looking at the performance of a fund, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, the standard deviation of TRBCX has stood at 19.04%, compared to an average of 16.45% for the category. The fund’s standard deviation over the past 5 years is 16.59% compared to the category average of 13.56%. This makes the fund more volatile than its peers over the past five years.
Investors should note that the fund has a beta of 0.99 over 5 years, which means it is hypothetically as volatile as the market as a whole. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is worth paying attention to this metric as well. With a positive alpha of 4.7, the managers of this portfolio are adept at selecting stocks that generate returns above the benchmark.
Examining the stock holdings of a mutual fund is also a valuable exercise. This can show us how the manager applies his stated methodology, as well as whether there are inherent biases in his approach. For this particular fund, the focus is primarily on stocks traded in the United States.
As of the last filing date, the mutual fund had 92.94% of its assets in stocks, which have an average market capitalization of $ 603.33 billion. The fund has the most exposure to the following market sectors:
- Retail business
The costs are increasingly important for investing in mutual funds, and particularly as competition intensifies in this market. And all else being equal, a lower-cost product will outperform its otherwise identical counterpart, so it’s critical for investors to take a closer look at these metrics. In terms of fees, TRBCX is a no-load fund. It has an expense ratio of 0.69% compared to the category average of 1.02%. From a cost perspective, TRBCX is actually cheaper than its peers.
This fund requires a minimum initial investment of $ 2,500, and each subsequent investment should be at least $ 100.
Overall, T. Rowe Price Blue Chip Growth Fund (TRBCX) has a neutral Zacks Mutual Fund ranking, and in conjunction with its comparatively strong performance, medium downside risk and lower fees, this fund seems like a choice. somewhat average for investors right now.
For more information on this product, or to compare it to other mutual funds in the Mutual Fund Report, be sure to go to www.zacks.com/funds/mutual-funds for more information. If you’d like to check out our inventory reports as well, be sure to go to Zacks.com to see all of the great tools we have to offer, including our proven Zacks Rankings.
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