We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If you have been looking for Mutual Fund Bond fund category, a potential starting could be T. Rowe Price Tax Free High Yield Retail (PRFHX - Free Report) . PRFHX carries 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 PRFHX. Since T. Rowe Price Tax Free High Yield Retail made its debut in March of 1985, PRFHX has garnered more than $3.58 billion in assets. The fund is currently managed by James M. Murphy who has been in charge of the fund since January of 2001.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.03%, and it sits 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 -3.2%, 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 14.02%, the standard deviation of PRFHX over the past three years is 9.07%. The standard deviation of the fund over the past 5 years is 7.25% compared to the category average of 12.1%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.89, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PRFHX has a positive alpha of 0.04, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 39 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, PRFHX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 0.79%. From a cost perspective, PRFHX 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.
Bottom Line
Overall, T. Rowe Price Tax Free High Yield Retail ( PRFHX ) 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.
This could just be the start of your research on PRFHXin 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. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is PRFHX a Strong Bond Fund Right Now?
If you have been looking for Mutual Fund Bond fund category, a potential starting could be T. Rowe Price Tax Free High Yield Retail (PRFHX - Free Report) . PRFHX carries 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 PRFHX. Since T. Rowe Price Tax Free High Yield Retail made its debut in March of 1985, PRFHX has garnered more than $3.58 billion in assets. The fund is currently managed by James M. Murphy who has been in charge of the fund since January of 2001.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.03%, and it sits 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 -3.2%, 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 14.02%, the standard deviation of PRFHX over the past three years is 9.07%. The standard deviation of the fund over the past 5 years is 7.25% compared to the category average of 12.1%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.89, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PRFHX has a positive alpha of 0.04, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 39 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, PRFHX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 0.79%. From a cost perspective, PRFHX 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.
Bottom Line
Overall, T. Rowe Price Tax Free High Yield Retail ( PRFHX ) 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.
This could just be the start of your research on PRFHXin 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. 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.