T. Rowe Price Blue Chip Growth I (TBCIX) is it currently a smart choice for mutual funds?

MFundraisers may consider taking a look at the T. Rowe Price Blue Chip Growth I (TBCIX). TBCIX 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

T. Rowe Price is responsible for TBCIX, and the company is based in Baltimore, MD. Since T. Rowe Price Blue Chip Growth I debuted in December 2015, TBCIX has garnered more than $ 37.83 billion in assets. The fund is currently managed by Larry J. Puglia who has been in charge of the fund since December 2015.

Performance

Investors naturally look for high performance funds. This fund has a 5-year total annualized return of 23.67% and is in the middle third of its peers in the category. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year 3-year total return of 23.79%, which puts it in the middle third during that time.

When examining 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. Compared to the category average of 16.01%, the standard deviation of TBCIX over the past three years is 19.14%. Over the past 5 years, the fund standard deviation is 16.65% compared to the category average of 13.59%. This makes the fund more volatile than its peers over the past five years.

Risk factors

Investors should note that the fund has a beta of 1 in 5 years, so it will likely be 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. The fund has produced a positive alpha of 5.13 over the past 5 years, showing that the managers of this portfolio are adept at selecting stocks that generate higher returns than the benchmark.

Holdings

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.

The mutual fund currently holds 93.97% of its holdings in stocks, which have an average market capitalization of $ 615.26 billion. The fund has the most exposure to the following market sectors:

  1. Technology
  2. Retail business

Expenses

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, TBCIX is a no-load fund. It has an expense ratio of 0.56% compared to the category average of 1.01%. So, TBCIX is actually cheaper than its peers from a cost perspective.

Although the minimum initial investment for the product is $ 1 million, investors should also note that there is no minimum for each subsequent investment.

Final result

Overall, T. Rowe Price Blue Chip Growth I (TBCIX) ranks neutral for Zacks mutual funds, and in conjunction with its comparatively similar performance, medium downside risk, and lower fees, T. Rowe Price Blue Chip Growth I (TBCIX) seems like a somewhat average choice for investors right now.

Your research on the segment of the mutual fund report shouldn’t end there. You can find out about all of the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well as for more information. For analysis of the rest of your portfolio, be sure to visit Zacks.com for our full suite of tools that will help you investigate all of your stocks and funds in one place.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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