If investors are looking at the Mid Cap Value fund category, T. Rowe Price Mid-Cap Value (TRMCX Quick QuoteTRMCX - Free Report) could be a potential option. TRMCX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify TRMCX in the Mid Cap Value category, an area rife with potential choices. Mid Cap Value mutual funds aim to target medium-sized companies that possess strong value and income opportunities for investors. A mid-cap company usually holds a market capitalization of between $2 billion and $10 billion.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of TRMCX. The T. Rowe Price Mid-Cap Value made its debut in June of 1996 and TRMCX has managed to accumulate roughly $4.44 billion in assets, as of the most recently available information. The fund is currently managed by Vincent DeAugustino who has been in charge of the fund 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 15.71%, 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 17.94%, 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. TRMCX's standard deviation over the past three years is 17.83% compared to the category average of 12.88%. The standard deviation of the fund over the past 5 years is 18.08% compared to the category average of 14.19%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.95, the fund is likely to be less 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. TRMCX's 5-year performance has produced a positive alpha of 0.38, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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, TRMCX is a no load fund. It has an expense ratio of 0.81% compared to the category average of 0.96%. 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 consideration. 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 the Mid Cap Value 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 TRMCX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.