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Is T. Rowe Price Communications & Technology Fund (PRMTX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Well, T. Rowe Price Communications & Technology Fund (PRMTX - Free Report) would not be a good potential starting point right now. PRMTX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is responsible for PRMTX, and the company is based out of Baltimore, MD. The T. Rowe Price Communications & Technology Fund made its debut in July of 1997 and PRMTX has managed to accumulate roughly $4.36 billion in assets, as of the most recently available information. The fund is currently managed by James Stillwagon who has been in charge of the fund since November of 2019.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 5.97%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 2.8%, 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. The standard deviation of PRMTX over the past three years is 23.68% compared to the category average of 19.72%. The standard deviation of the fund over the past 5 years is 20.71% compared to the category average of 16.99%. 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. PRMTX has a 5-year beta of 0.96, 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 negative alpha over the past 5 years of -2.51, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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, 82.69% of this mutual fund's holdings are stocks, which have an average market capitalization of $260.46 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Non-Durable
Retail Trade
Turnover is 18%, which means, on average, the fund makes fewer trades than its comparable peers.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRMTX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.30%. From a cost perspective, PRMTX 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.
Bottom Line
Overall, T. Rowe Price Communications & Technology Fund ( PRMTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is T. Rowe Price Communications & Technology Fund (PRMTX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, T. Rowe Price Communications & Technology Fund (PRMTX - Free Report) would not be a good potential starting point right now. PRMTX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is responsible for PRMTX, and the company is based out of Baltimore, MD. The T. Rowe Price Communications & Technology Fund made its debut in July of 1997 and PRMTX has managed to accumulate roughly $4.36 billion in assets, as of the most recently available information. The fund is currently managed by James Stillwagon who has been in charge of the fund since November of 2019.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 5.97%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 2.8%, 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. The standard deviation of PRMTX over the past three years is 23.68% compared to the category average of 19.72%. The standard deviation of the fund over the past 5 years is 20.71% compared to the category average of 16.99%. 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. PRMTX has a 5-year beta of 0.96, 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 negative alpha over the past 5 years of -2.51, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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, 82.69% of this mutual fund's holdings are stocks, which have an average market capitalization of $260.46 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Non-Durable
- Retail Trade
Turnover is 18%, which means, on average, the fund makes fewer trades than its comparable peers.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRMTX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.30%. From a cost perspective, PRMTX 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.
Bottom Line
Overall, T. Rowe Price Communications & Technology Fund ( PRMTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.