T. Rowe price is a name that has become synonymous with mutual funds and investing. T. Rowe Price is one of my favorite mutual fund companies as it offers a wide array of no-load funds, both domestic and international allowing for plenty of options for the enthusiastic mutual fund investor. One of the top performing funds for 2017 is listed below along with a brief overview of the fund.
- Current NAV as of 03/16/2018 $107.81
- NAV Change -$0.12
- Daily YTD Return as of 03/16/2018 11.94%
- NAV 12 Month Low-High $78.82 – $108.71
- Net Assets as of 02/28/2018 $51,200.29 Million
The Fees and Expenses are detailed below:
- Gross Expense Ratio^
- Net Expense Ratio^
- Waiver Type
- Limitation Expires
- Transaction Fee No
- Redemption Fee 0%
- 12b-1 Fee 0%
In order to open an account and purchase this mutual fund one may do so with $1,000 through an IRA retirement account, or in a taxable account with a minimum of $2,500. Additionally, if one wants to set up automatic investments or systematic purchases of this fund, one may do so with a minimum recurring purchase of at least $100 (monthly/quarterly, etc.).
This is a moderately risky fund. The fund offers long-term capital appreciation by investing in leading companies in industries T. Rowe Price believes are poised for long-term growth. It gives investors a low-cost way to invest in “blue chip” companies that enjoy strong market positions, seasoned management teams, solid financial conditions, and above-average earnings growth and profitability.
Because growth stocks have higher valuations and lower dividend yields than slower-growth or cyclical companies, the share price volatility may be higher. As such, fund prices could decline further in market downturns than non-growth-oriented funds.
The 10 year historical performance for this fund was 12.92% for the month ending 2/28/18. In my opinion, this is a good fund to own long term, and a great company. The fund’s overall performance for an extended period (10 years) has been excellent, and the fund offers no front load fees and no back load fees with an ongoing management fee as listed above. I personally like T. Rowe Price and the funds they offer.
Mutual funds, in my opinion are a great investment for the long term to build wealth over time. My preference would be to always own them in tax preferred retirement accounts such as 401k’s, SEP IRA’s, IRA’s, Roth IRA’s, etc. If you have been savvy enough and are fortunate enough to have maxed out those accounts, then I would also argue these are a great long term investment for taxable brokerage accounts. I again must emphasize not to overlook the value of growing your wealth inside of tax preferred retirement accounts and the large difference this can have on your net worth over time. I am working on growing my wealth at this time as well and have most investments inside of tax preferred accounts for this exact reason, the compound growth is tax free until withdrawal and thus there is more money invested on an ongoing basis and every year which can accumulate more interest and grow. This is a humongous benefit, compound interest growth is no joke!