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Is T. Rowe Price Personal Strategy Growth (TRSGX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for TRSGX

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This story originally appeared on Zacks

Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with T. Rowe Price Personal Strategy Growth (TRSGX). TRSGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

- Zacks

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of TRSGX. The T. Rowe Price Personal Strategy Growth made its debut in July of 1994 and TRSGX has managed to accumulate roughly $3.25 billion in assets, as of the most recently available information. The fund is currently managed by Charles Shriver who has been in charge of the fund since May of 2011.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. TRSGX has a 5-year annualized total return of 13.16% and it sits 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 14.74%, 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, TRSGX's standard deviation comes in at 15.01%, compared to the category average of 15.52%. Looking at the past 5 years, the fund's standard deviation is 12.48% compared to the category average of 12.67%. This makes the fund less 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. TRSGX has a 5-year beta of 0.78, which means it is likely to be less 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. TRSGX has generated a negative alpha over the past five years of -0.9, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining 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.

Right now, 75% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $457.02 billion. The fund has the heaviest exposure to the following market sectors:

  1. Finance
  2. Technology
  3. Other

This fund's turnover is about 55%, so the fund managers are making fewer trades than comparable funds.

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, TRSGX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.78%. From a cost perspective, TRSGX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.

Bottom Line

Overall, T. Rowe Price Personal Strategy Growth ( TRSGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Don't stop here for your research on Mutual Fund Equity Report 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 TRSGX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.



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