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Is T. Rowe Price Global Allocation (RPGAX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Mutual Fund Equity Report funds, a place to start could be T. Rowe Price Global Allocation (RPGAX - Free Report) . RPGAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
RPGAX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. The T. Rowe Price Global Allocation made its debut in May of 2013 and RPGAX has managed to accumulate roughly $978.95 million in assets, as of the most recently available information. The fund is currently managed by Charles Shriver who has been in charge of the fund since May of 2013.
Performance
Investors naturally seek funds with strong performance. RPGAX has a 5-year annualized total return of 10.51% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 13.33%, 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. Over the past three years, RPGAX's standard deviation comes in at 12.28%, compared to the category average of 14.45%. Over the past 5 years, the standard deviation of the fund is 10.22% compared to the category average of 11.97%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. RPGAX has a 5-year beta of 0.62, which means it is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -1.32. This means that managers in this portfolio find it difficult to pick 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, RPGAX is a no load fund. It has an expense ratio of 0.72% compared to the category average of 0.89%. From a cost perspective, RPGAX 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 Global Allocation ( RPGAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare RPGAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is T. Rowe Price Global Allocation (RPGAX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report funds, a place to start could be T. Rowe Price Global Allocation (RPGAX - Free Report) . RPGAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
RPGAX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. The T. Rowe Price Global Allocation made its debut in May of 2013 and RPGAX has managed to accumulate roughly $978.95 million in assets, as of the most recently available information. The fund is currently managed by Charles Shriver who has been in charge of the fund since May of 2013.
Performance
Investors naturally seek funds with strong performance. RPGAX has a 5-year annualized total return of 10.51% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 13.33%, 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. Over the past three years, RPGAX's standard deviation comes in at 12.28%, compared to the category average of 14.45%. Over the past 5 years, the standard deviation of the fund is 10.22% compared to the category average of 11.97%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. RPGAX has a 5-year beta of 0.62, which means it is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -1.32. This means that managers in this portfolio find it difficult to pick 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, RPGAX is a no load fund. It has an expense ratio of 0.72% compared to the category average of 0.89%. From a cost perspective, RPGAX 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 Global Allocation ( RPGAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare RPGAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.