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Is T. Rowe Price Growth Stock I (PRUFX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Large Cap Growth funds, consider T. Rowe Price Growth Stock I (PRUFX - Free Report) as a possibility. PRUFX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRUFX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
PRUFX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Growth Stock I made its debut in September of 2015, and since then, PRUFX has accumulated about $14.87 billion in assets, per the most up-to-date date available. The fund's current manager, Joseph Fath, has been in charge of the fund since September of 2015.
Performance
Investors naturally seek funds with strong performance. PRUFX has a 5-year annualized total return of 10.58%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 26.24%, which places it in the middle 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 PRUFX over the past three years is 16.04% compared to the category average of 12.61%. Over the past 5 years, the standard deviation of the fund is 19.16% compared to the category average of 14.47%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.14, which means it is hypothetically more volatile than the market at large. 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 -5.02. 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 92.57% of its assets in stocks, with an average market capitalization of $1.03 trillion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
This fund's turnover is about 35.4%, so the fund managers are 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, PRUFX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 0.94%. From a cost perspective, PRUFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $500,000; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Growth Stock I ( PRUFX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PRUFX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is T. Rowe Price Growth Stock I (PRUFX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Large Cap Growth funds, consider T. Rowe Price Growth Stock I (PRUFX - Free Report) as a possibility. PRUFX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRUFX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
PRUFX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Growth Stock I made its debut in September of 2015, and since then, PRUFX has accumulated about $14.87 billion in assets, per the most up-to-date date available. The fund's current manager, Joseph Fath, has been in charge of the fund since September of 2015.
Performance
Investors naturally seek funds with strong performance. PRUFX has a 5-year annualized total return of 10.58%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 26.24%, which places it in the middle 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 PRUFX over the past three years is 16.04% compared to the category average of 12.61%. Over the past 5 years, the standard deviation of the fund is 19.16% compared to the category average of 14.47%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.14, which means it is hypothetically more volatile than the market at large. 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 -5.02. 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 92.57% of its assets in stocks, with an average market capitalization of $1.03 trillion. The fund has the heaviest exposure to the following market sectors:
This fund's turnover is about 35.4%, so the fund managers are 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, PRUFX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 0.94%. From a cost perspective, PRUFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $500,000; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Growth Stock I ( PRUFX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PRUFX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.