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Is RPSIX a Strong Bond Fund Right Now?

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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that you should consider investigating is T. Rowe Price Spectrum Income (RPSIX - Free Report) . RPSIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

RPSIX finds itself in the T. Rowe Price family, based out of Baltimore, MD. The T. Rowe Price Spectrum Income made its debut in June of 1990 and RPSIX has managed to accumulate roughly $1.94 billion in assets, as of the most recently available information. The fund's current manager, Charles Shriver, has been in charge of the fund since May of 2011.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 1.83%, and is in the middle 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 -0.45%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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 9.99%, the standard deviation of RPSIX over the past three years is 6.95%. The fund's standard deviation over the past 5 years is 7.32% compared to the category average of 11.35%. This makes the fund less volatile than its peers over the past half-decade.

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, RPSIX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.81%. Looking at the fund from a cost perspective, RPSIX is actually cheaper than its peers.

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.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, T. Rowe Price Spectrum Income ( RPSIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Spectrum Income ( RPSIX ) looks like a somewhat average choice for investors right now.

This could just be the start of your research on RPSIXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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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