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Is T. Rowe Price Blue Chip Growth I (TBCIX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Growth fund? Starting with T. Rowe Price Blue Chip Growth I (TBCIX - Free Report) is one possibility. TBCIX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify TBCIX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of TBCIX. The T. Rowe Price Blue Chip Growth I made its debut in December of 2015 and TBCIX has managed to accumulate roughly $32.07 billion in assets, as of the most recently available information. The fund's current manager, Paul Greene, has been in charge of the fund since October of 2021.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 11.74%, 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 26.17%, 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. TBCIX's standard deviation over the past three years is 15.95% compared to the category average of 11.9%. Over the past 5 years, the standard deviation of the fund is 20.02% compared to the category average of 14.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. TBCIX has a 5-year beta of 1.18, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.21. This means that managers in this portfolio find it difficult to pick 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, TBCIX is a no load fund. It has an expense ratio of 0.57% compared to the category average of 0.93%. TBCIX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $500,000 and that 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, T. Rowe Price Blue Chip Growth I ( TBCIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, T. Rowe Price Blue Chip Growth I ( TBCIX ) looks like 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 TBCIX to its peers as well 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.
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Is T. Rowe Price Blue Chip Growth I (TBCIX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Growth fund? Starting with T. Rowe Price Blue Chip Growth I (TBCIX - Free Report) is one possibility. TBCIX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify TBCIX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of TBCIX. The T. Rowe Price Blue Chip Growth I made its debut in December of 2015 and TBCIX has managed to accumulate roughly $32.07 billion in assets, as of the most recently available information. The fund's current manager, Paul Greene, has been in charge of the fund since October of 2021.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 11.74%, 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 26.17%, 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. TBCIX's standard deviation over the past three years is 15.95% compared to the category average of 11.9%. Over the past 5 years, the standard deviation of the fund is 20.02% compared to the category average of 14.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. TBCIX has a 5-year beta of 1.18, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.21. This means that managers in this portfolio find it difficult to pick 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, TBCIX is a no load fund. It has an expense ratio of 0.57% compared to the category average of 0.93%. TBCIX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $500,000 and that 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, T. Rowe Price Blue Chip Growth I ( TBCIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, T. Rowe Price Blue Chip Growth I ( TBCIX ) looks like 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 TBCIX to its peers as well 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.