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Is T. Rowe Price Mid-Cap Growth Fund (RPMGX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mid Cap Growth fund? Starting with T. Rowe Price Mid-Cap Growth Fund (RPMGX - Free Report) is one possibility. RPMGX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
RPMGX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of RPMGX. Since T. Rowe Price Mid-Cap Growth Fund made its debut in June of 1992, RPMGX has garnered more than $12.69 billion in assets. Brian W. H. Berghuis is the fund's current manager and has held that role since June of 1992.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 9.71%, 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 2.46%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 18.4%, compared to the category average of 15.77%. The fund's standard deviation over the past 5 years is 20.01% compared to the category average of 16.65%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.04, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -4.17. This means that managers in this portfolio find it difficult to pick 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.
Right now, 84.02% of this mutual fund's holdings are stocks, which have an average market capitalization of $24.55 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Health
With turnover at about 20%, this fund is making fewer trades than the average comparable fund.
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 0.76% compared to the category average of 0.98%. From a cost perspective, RPMGX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
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, T. Rowe Price Mid-Cap Growth Fund ( RPMGX ) looks like a great potential choice for investors right now.
Your research on the Mid Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.
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Is T. Rowe Price Mid-Cap Growth Fund (RPMGX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mid Cap Growth fund? Starting with T. Rowe Price Mid-Cap Growth Fund (RPMGX - Free Report) is one possibility. RPMGX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
RPMGX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of RPMGX. Since T. Rowe Price Mid-Cap Growth Fund made its debut in June of 1992, RPMGX has garnered more than $12.69 billion in assets. Brian W. H. Berghuis is the fund's current manager and has held that role since June of 1992.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 9.71%, 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 2.46%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 18.4%, compared to the category average of 15.77%. The fund's standard deviation over the past 5 years is 20.01% compared to the category average of 16.65%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.04, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -4.17. This means that managers in this portfolio find it difficult to pick 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.
Right now, 84.02% of this mutual fund's holdings are stocks, which have an average market capitalization of $24.55 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
- Health
With turnover at about 20%, this fund is making fewer trades than the average comparable fund.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 0.76% compared to the category average of 0.98%. From a cost perspective, RPMGX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
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, T. Rowe Price Mid-Cap Growth Fund ( RPMGX ) looks like a great potential choice for investors right now.
Your research on the Mid Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.