If you've been stuck searching for Mutual Fund Equity Report funds, consider T. Rowe Price Dividend Growth (PRDGX Quick QuotePRDGX - Free Report) as a possibility. PRDGX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of PRDGX. Since T. Rowe Price Dividend Growth made its debut in December of 1992, PRDGX has garnered more than $12.93 billion in assets. The fund is currently managed by Thomas J. Huber who has been in charge of the fund since March of 2000.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.76%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 18.73%, which places it in the middle 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. Compared to the category average of 15.5%, the standard deviation of PRDGX over the past three years is 16%. Over the past 5 years, the standard deviation of the fund is 14.15% compared to the category average of 13.64%. This makes the fund more 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. PRDGX has a 5-year beta of 0.88, which means it is likely to be less volatile than the market average. 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. The fund has produced a positive alpha over the past 5 years of 0.87, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.

Right now, 75.37% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $289.41 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Finance
3. Industrial Cyclical
4. Non-Durable

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, PRDGX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.93%. PRDGX is actually cheaper than its peers when you consider factors like cost.

While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.

Bottom Line

Overall, T. Rowe Price Dividend Growth ( PRDGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Dividend Growth ( PRDGX ) looks like a good potential choice for investors right now.

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