If you've been stuck searching for Sector - Tech funds, consider T. Rowe Price Science & Technology Fund (PRSCX Quick QuotePRSCX - Free Report) as a possibility. PRSCX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Sector - Tech funds is an area filled with options, and PRSCX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.

History of Fund/Manager

PRSCX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Science & Technology Fund made its debut in September of 1987, and since then, PRSCX has accumulated about $6.39 billion in assets, per the most up-to-date date available. Anthony Wang is the fund's current manager and has held that role since October of 2023.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. PRSCX has a 5-year annualized total return of 12.07%, and it sits in the middle 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 34.29%, 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. Compared to the category average of 13.6%, the standard deviation of PRSCX over the past three years is 19.47%. The standard deviation of the fund over the past 5 years is 22.14% compared to the category average of 15.98%. 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 1.17, 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. PRSCX's 5-year performance has produced a negative alpha of -2.49, which means 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.

As of the last filing date, the mutual fund has 82.45% of its assets in stocks, with an average market capitalization of $760.52 billion. The fund has the heaviest exposure to the following market sectors:

• Technology

With turnover at about 229.1%, this fund makes more trades in a given year than the category average.

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, PRSCX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1.01%. From a cost perspective, PRSCX is actually cheaper than its peers.

This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $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 Science & Technology Fund ( PRSCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, T. Rowe Price Science & Technology Fund ( PRSCX ) looks like a good potential choice for investors right now.

For additional information on the Sector - Tech 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 PRSCX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.