Mutual Fund Equity Report fund seekers should consider taking a look at T. Rowe Price Capital Appreciation Fund (PRWCX Quick QuotePRWCX - Free Report) . PRWCX bears a Zacks Mutual Fund Rank of 1 (Strong 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 PRWCX. T. Rowe Price Capital Appreciation Fund made its debut in June of 1986, and since then, PRWCX has accumulated about $26.53 billion in assets, per the most up-to-date date available. The fund is currently managed by David R. Giroux who has been in charge of the fund since June of 2006.

Performance

Of course, investors look for strong performance in funds. PRWCX has a 5-year annualized total return of 9.41% and it sits in the top 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 8.31%, which places it in the top 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 16.23%, the standard deviation of PRWCX over the past three years is 15.51%. The standard deviation of the fund over the past 5 years is 13.16% compared to the category average of 14.17%. 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 0.68, so it is likely going to be less volatile than 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. The fund has produced a positive alpha over the past 5 years of 2.12, which shows that managers in this portfolio are skilled in picking 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.

Currently, this mutual fund is holding 84.81% stock in stocks, and these companies have an average market capitalization of $258.09 billion. The fund has the heaviest exposure to the following market sectors:

• Other
• Technology
• Industrial Cyclical

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRWCX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 1.08%. From a cost perspective, PRWCX is actually cheaper than its peers.

Investors should also note, that according to our data, the fund does not have any minimum investment requirements.

Bottom Line

Overall, T. Rowe Price Capital Appreciation Fund ( PRWCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Capital Appreciation Fund ( PRWCX ) looks like a good potential choice for investors right now.

This could just be the start of your research on PRWCXin the Mutual Fund Equity Report 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.