Large Cap Blend fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX Quick QuoteTPLGX - Free Report) . TPLGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

TPLGX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of TPLGX. The T. Rowe Price Institutional Large Cap Core made its debut in October of 2003 and TPLGX has managed to accumulate roughly $3.75 billion in assets, as of the most recently available information. The fund's current manager, Larry J. Puglia, has been in charge of the fund since October of 2003.

Performance

Investors naturally seek funds with strong performance. TPLGX has a 5-year annualized total return of 19.08% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 20.16%, which places it in the top third during this time-frame.

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. Over the past three years, TPLGX's standard deviation comes in at 12.44%, compared to the category average of 10.58%. Over the past 5 years, the standard deviation of the fund is 12.18% compared to the category average of 10.32%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In the most recent bear market, TPLGX lost 51.61% and outperformed its peer group by 1.94%. These results could imply that the fund is a better choice than its peers during a sliding market environment.

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. TPLGX has a 5-year beta of 1.08, which means it is likely to be more 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. Over the past 5 years, the fund has a positive alpha of 3.14. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Investigating 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 primarily on equities that are traded in the United States.

The mutual fund currently has 91.6% of its holdings in stocks, with an average market capitalization of $285.87 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Finance

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, TPLGX is a no load fund. It has an expense ratio of 0.56% compared to the category average of 1%. Looking at the fund from a cost perspective, TPLGX is actually cheaper than its peers.

While the minimum initial investment for the product is $1 million, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

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

For additional information on the Large Cap Blend 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 TPLGX too 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.