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Is T. Rowe Price Blue Chip Growth Adviser (PABGX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should not consider taking a look at T. Rowe Price Blue Chip Growth Adviser (PABGX - Free Report) at this time. PABGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
PABGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Blue Chip Growth Adviser made its debut in June of 1993, and since then, PABGX has accumulated about $1.34 billion in assets, per the most up-to-date date available. Paul Greene is the fund's current manager and has held that role since October of 2021.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.12%, and is in the bottom 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 4.82%, 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. Compared to the category average of 17.23%, the standard deviation of PABGX over the past three years is 22.63%. The standard deviation of the fund over the past 5 years is 21.6% compared to the category average of 16.66%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PABGX has a 5-year beta of 1.07, which means it is likely to be more volatile than the market average. 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. PABGX's 5-year performance has produced a negative alpha of -4.13, which means 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 primarily on equities that are traded in the United States.
The mutual fund currently has 89.46% of its holdings in stocks, and these companies have an average market capitalization of $400.31 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Retail Trade
This fund's turnover is about 10.5%, so the fund managers are making 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, PABGX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 0.99%. PABGX is actually cheaper than its peers when you consider factors like cost.
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 Blue Chip Growth Adviser ( PABGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Blue Chip Growth Adviser ( PABGX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is T. Rowe Price Blue Chip Growth Adviser (PABGX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should not consider taking a look at T. Rowe Price Blue Chip Growth Adviser (PABGX - Free Report) at this time. PABGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
PABGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Blue Chip Growth Adviser made its debut in June of 1993, and since then, PABGX has accumulated about $1.34 billion in assets, per the most up-to-date date available. Paul Greene is the fund's current manager and has held that role since October of 2021.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.12%, and is in the bottom 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 4.82%, 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. Compared to the category average of 17.23%, the standard deviation of PABGX over the past three years is 22.63%. The standard deviation of the fund over the past 5 years is 21.6% compared to the category average of 16.66%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PABGX has a 5-year beta of 1.07, which means it is likely to be more volatile than the market average. 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. PABGX's 5-year performance has produced a negative alpha of -4.13, which means 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 primarily on equities that are traded in the United States.
The mutual fund currently has 89.46% of its holdings in stocks, and these companies have an average market capitalization of $400.31 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Retail Trade
This fund's turnover is about 10.5%, so the fund managers are making 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, PABGX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 0.99%. PABGX is actually cheaper than its peers when you consider factors like cost.
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 Blue Chip Growth Adviser ( PABGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Blue Chip Growth Adviser ( PABGX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.