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Is T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should consider taking a look at T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) . PMEGX possesses a Zacks Mutual Fund Rank of 1 (Strong 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 PMEGX. The T. Rowe Price Institutional Mid-Cap Equity Growth made its debut in July of 1996 and PMEGX has managed to accumulate roughly $4.85 billion in assets, as of the most recently available information. Brian W. H. Berghuis is the fund's current manager and has held that role since July of 1996.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. PMEGX has a 5-year annualized total return of 6.65% and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 2.71%, which places it in the bottom 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. PMEGX's standard deviation over the past three years is 22.61% compared to the category average of 24.43%. The standard deviation of the fund over the past 5 years is 19.99% compared to the category average of 21.75%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -2.43. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 90.75% of its holdings in stocks, with an average market capitalization of $20.41 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Health
This fund's turnover is about 23.6%, so the fund managers are making fewer trades than comparable funds.
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, PMEGX is a no load fund. It has an expense ratio of 0.61% compared to the category average of 1.14%. PMEGX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Bottom Line
Overall, T. Rowe Price Institutional Mid-Cap Equity Growth ( PMEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PMEGX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) . PMEGX possesses a Zacks Mutual Fund Rank of 1 (Strong 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 PMEGX. The T. Rowe Price Institutional Mid-Cap Equity Growth made its debut in July of 1996 and PMEGX has managed to accumulate roughly $4.85 billion in assets, as of the most recently available information. Brian W. H. Berghuis is the fund's current manager and has held that role since July of 1996.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. PMEGX has a 5-year annualized total return of 6.65% and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 2.71%, which places it in the bottom 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. PMEGX's standard deviation over the past three years is 22.61% compared to the category average of 24.43%. The standard deviation of the fund over the past 5 years is 19.99% compared to the category average of 21.75%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -2.43. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 90.75% of its holdings in stocks, with an average market capitalization of $20.41 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
- Health
This fund's turnover is about 23.6%, so the fund managers are making fewer trades than comparable funds.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, PMEGX is a no load fund. It has an expense ratio of 0.61% compared to the category average of 1.14%. PMEGX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Bottom Line
Overall, T. Rowe Price Institutional Mid-Cap Equity Growth ( PMEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PMEGX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.