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Is T. Rowe Price Mid-Cap Value Fund (TRMCX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? T. Rowe Price Mid-Cap Value Fund (TRMCX - Free Report) is a possible starting point. TRMCX possesses a Zacks Mutual Fund Rank of 3 (Hold), 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 TRMCX. T. Rowe Price Mid-Cap Value Fund made its debut in June of 1996, and since then, TRMCX has accumulated about $6.19 billion in assets, per the most up-to-date date available. The fund is currently managed by David J. Wallack who has been in charge of the fund since December of 2000.
Performance
Of course, investors look for strong performance in funds. TRMCX has a 5-year annualized total return of 11.82% 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 13.73%, 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 17.52%, the standard deviation of TRMCX over the past three years is 22.46%. Over the past 5 years, the standard deviation of the fund is 18.31% compared to the category average of 14.36%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.07, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -6.71, managers in this portfolio find it difficult to pick 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 largely on equities that are traded in the United States.
This fund is currently holding about 89.84% stock in stocks, with an average market capitalization of $19.35 billion. The fund has the heaviest exposure to the following market sectors:
Other
Finance
Industrial Cyclical
Non-Durable
With turnover at about 28.8%, this fund makes fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.12%. So, TRMCX is actually cheaper than its peers from a cost perspective.
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 Mid-Cap Value Fund ( TRMCX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Mid-Cap Value Fund ( TRMCX ) looks like a somewhat average choice for investors right now.
Want even more information about TRMCX? 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 Mid-Cap Value Fund (TRMCX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? T. Rowe Price Mid-Cap Value Fund (TRMCX - Free Report) is a possible starting point. TRMCX possesses a Zacks Mutual Fund Rank of 3 (Hold), 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 TRMCX. T. Rowe Price Mid-Cap Value Fund made its debut in June of 1996, and since then, TRMCX has accumulated about $6.19 billion in assets, per the most up-to-date date available. The fund is currently managed by David J. Wallack who has been in charge of the fund since December of 2000.
Performance
Of course, investors look for strong performance in funds. TRMCX has a 5-year annualized total return of 11.82% 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 13.73%, 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 17.52%, the standard deviation of TRMCX over the past three years is 22.46%. Over the past 5 years, the standard deviation of the fund is 18.31% compared to the category average of 14.36%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.07, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -6.71, managers in this portfolio find it difficult to pick 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 largely on equities that are traded in the United States.
This fund is currently holding about 89.84% stock in stocks, with an average market capitalization of $19.35 billion. The fund has the heaviest exposure to the following market sectors:
- Other
- Finance
- Industrial Cyclical
- Non-Durable
With turnover at about 28.8%, this fund makes fewer trades than the average comparable fund.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.12%. So, TRMCX is actually cheaper than its peers from a cost perspective.
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 Mid-Cap Value Fund ( TRMCX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Mid-Cap Value Fund ( TRMCX ) looks like a somewhat average choice for investors right now.
Want even more information about TRMCX? 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.