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Having trouble finding a Diversified Bonds fund? T. Rowe Price Spectrum Income (RPSIX - Free Report) is a possible starting point. RPSIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
RPSIX is one of many Diversified Bonds funds to choose from. Diversified Bonds funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. Usually, these funds will have a good amount of exposure to government debt, in addition to modest holdings in the corporate bond market.
History of Fund/Manager
RPSIX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Spectrum Income made its debut in June of 1990, RPSIX has garnered more than $1.87 billion in assets. 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 2.28%, 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 -0.56%, which places it in the bottom 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. The standard deviation of RPSIX over the past three years is 7.27% compared to the category average of 10.13%. Looking at the past 5 years, the fund's standard deviation is 7.65% compared to the category average of 11.44%. This makes the fund less volatile than its peers over the past half-decade.
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, RPSIX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.94%. From a cost perspective, RPSIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $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, this fund looks like a somewhat average choice for investors right now.
For additional information on the Diversified Bonds area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into RPSIX too 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 RPSIX a Strong Bond Fund Right Now?
Having trouble finding a Diversified Bonds fund? T. Rowe Price Spectrum Income (RPSIX - Free Report) is a possible starting point. RPSIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
RPSIX is one of many Diversified Bonds funds to choose from. Diversified Bonds funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. Usually, these funds will have a good amount of exposure to government debt, in addition to modest holdings in the corporate bond market.
History of Fund/Manager
RPSIX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Spectrum Income made its debut in June of 1990, RPSIX has garnered more than $1.87 billion in assets. 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 2.28%, 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 -0.56%, which places it in the bottom 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. The standard deviation of RPSIX over the past three years is 7.27% compared to the category average of 10.13%. Looking at the past 5 years, the fund's standard deviation is 7.65% compared to the category average of 11.44%. This makes the fund less volatile than its peers over the past half-decade.
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, RPSIX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.94%. From a cost perspective, RPSIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $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, this fund looks like a somewhat average choice for investors right now.
For additional information on the Diversified Bonds area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into RPSIX too 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.