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Is T. Rowe Price Mid-Cap Growth Fund (RPMGX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is T. Rowe Price Mid-Cap Growth Fund (RPMGX - Free Report) . RPMGX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various 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 RPMGX. The T. Rowe Price Mid-Cap Growth Fund made its debut in June of 1992 and RPMGX has managed to accumulate roughly $12.06 billion in assets, as of the most recently available information. The fund is currently managed by Brian W. H. Berghuis who has been in charge of the fund since June of 1992.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 7.7%, 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 6.31%, 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. Over the past three years, RPMGX's standard deviation comes in at 23.02%, compared to the category average of 19.22%. Over the past 5 years, the standard deviation of the fund is 19.95% compared to the category average of 16.87%. 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 1.01, so it is likely going to be as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. RPMGX has generated a negative alpha over the past five years of -1.54, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
Currently, this mutual fund is holding 90.61% stock in stocks, which have an average market capitalization of $20.32 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Health
This fund's turnover is about 21.2%, so the fund managers are making fewer trades than its comparable peers.
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, RPMGX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.15%. RPMGX is actually cheaper than its peers when you consider factors like cost.
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 Growth Fund ( RPMGX ) 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 good potential choice for investors right now.
For additional information on the Mutual Fund Equity Report 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 RPMGX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Mid-Cap Growth Fund (RPMGX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is T. Rowe Price Mid-Cap Growth Fund (RPMGX - Free Report) . RPMGX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various 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 RPMGX. The T. Rowe Price Mid-Cap Growth Fund made its debut in June of 1992 and RPMGX has managed to accumulate roughly $12.06 billion in assets, as of the most recently available information. The fund is currently managed by Brian W. H. Berghuis who has been in charge of the fund since June of 1992.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 7.7%, 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 6.31%, 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. Over the past three years, RPMGX's standard deviation comes in at 23.02%, compared to the category average of 19.22%. Over the past 5 years, the standard deviation of the fund is 19.95% compared to the category average of 16.87%. 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 1.01, so it is likely going to be as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. RPMGX has generated a negative alpha over the past five years of -1.54, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
Currently, this mutual fund is holding 90.61% stock in stocks, which have an average market capitalization of $20.32 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
- Health
This fund's turnover is about 21.2%, so the fund managers are making fewer trades than its comparable peers.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, RPMGX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.15%. RPMGX is actually cheaper than its peers when you consider factors like cost.
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 Growth Fund ( RPMGX ) 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 good potential choice for investors right now.
For additional information on the Mutual Fund Equity Report 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 RPMGX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.