Having trouble finding a Mid Cap Value fund? T. Rowe Price Mid-Cap Value (TRMCX Quick QuoteTRMCX - Free Report) is a potential starting point. TRMCX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

TRMCX is one of many Mid Cap Value mutual funds to choose from. Mid Cap Value funds usually invest in companies with a stock market valuation between $2 billion and $10 billion; these medium-sized firms possess strong value and income opportunities for investors.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of TRMCX. T. Rowe Price Mid-Cap Value made its debut in June of 1996, and since then, TRMCX has accumulated about $4.20 billion in assets, per the most up-to-date date available. Vincent DeAugustino is the fund's current manager and has held that role since May of 2022.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. TRMCX has a 5-year annualized total return of 14.23% 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 10.53%, 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. The standard deviation of TRMCX over the past three years is 19.26% compared to the category average of 15.26%. Over the past 5 years, the standard deviation of the fund is 21.38% compared to the category average of 16.45%. 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. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.71. 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 principally on equities that are traded in the United States.

As of the last filing date, the mutual fund has 84.18% of its assets in stocks, with an average market capitalization of $19.36 billion. The fund has the heaviest exposure to the following market sectors:

• Industrial Cyclical
• Technology
• Finance
• Other

Turnover is about 48.2%, so those in charge of the fund make 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, TRMCX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 0.95%. From a cost perspective, TRMCX 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

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

For additional information on this product, or to compare it to other mutual funds in the Mid Cap Value, make sure to go to www.zacks.com/funds/mutual-funds 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.