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Is T. Rowe Price Media & Telecomm (PRMTX) a Strong Mutual Fund Pick Right Now?
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Sector - Tech fund seekers should consider taking a look at T. Rowe Price Media & Telecomm (PRMTX - Free Report) . PRMTX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that PRMTX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
PRMTX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Media & Telecomm made its debut in July of 1997, and since then, PRMTX has accumulated about $8.04 billion in assets, per the most up-to-date date available. The fund's current manager, James Stillwagon, has been in charge of the fund since November of 2019.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 25.08%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 22.25%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PRMTX over the past three years is 18.16% compared to the category average of 16.38%. Over the past 5 years, the standard deviation of the fund is 15.48% compared to the category average of 13.82%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.88, so investors should note that it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a positive alpha of 9.84. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRMTX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.37%. From a cost perspective, PRMTX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.
Bottom Line
Overall, T. Rowe Price Media & Telecomm ( PRMTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Media & Telecomm ( PRMTX ) looks like a good potential choice for investors right now.
Want even more information about PRMTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is T. Rowe Price Media & Telecomm (PRMTX) a Strong Mutual Fund Pick Right Now?
Sector - Tech fund seekers should consider taking a look at T. Rowe Price Media & Telecomm (PRMTX - Free Report) . PRMTX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that PRMTX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
PRMTX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Media & Telecomm made its debut in July of 1997, and since then, PRMTX has accumulated about $8.04 billion in assets, per the most up-to-date date available. The fund's current manager, James Stillwagon, has been in charge of the fund since November of 2019.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 25.08%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 22.25%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PRMTX over the past three years is 18.16% compared to the category average of 16.38%. Over the past 5 years, the standard deviation of the fund is 15.48% compared to the category average of 13.82%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.88, so investors should note that it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a positive alpha of 9.84. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRMTX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.37%. From a cost perspective, PRMTX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.
Bottom Line
Overall, T. Rowe Price Media & Telecomm ( PRMTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Media & Telecomm ( PRMTX ) looks like a good potential choice for investors right now.
Want even more information about PRMTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.