T. Rowe Price Fund Offers Balanced Plan of Attack

Diversification is the name of the game for this investment

   

T. Rowe Price Fund Offers Balanced Plan of Attack

The T. Rowe Price Personal Strategy Balanced Fund (MUTF: TRPBX) is an IRA fund for long-term aggressive growth investors who are looking for some diversification, but are not sure how to go about it. The fund allocates its holdings across a broad mix of asset classes to achieve its predetermined diversification goals, which includes obtaining the highest total return over time from both a stock’s capital appreciation and income from bonds.

Here are the specifics for the T. Rowe Price Personal Strategy Balanced Fund for today’s mutual fund spotlight:

Investing Strategy: The fund invests mostly in stocks but also in bonds and money markets accounts. It invests a significant portion of its assets in other T. Rowe Price mutual funds. Some 64% of the fund’s assets are in stocks, 30% are in bonds and 5% is in cash.

Expense Ratio: The fund is low priced with an expense ratio of .77% and no transaction fee. It has a Morningstar Rating of four stars.

Top 5 Holdings: The top stocks in the T. Rowe Price Personal Strategy Balanced Fund include mutual funds T. Rowe Price Institutional High Yield (MUTF: TRHYX) at 4.59%, Reserve Investor -SBI at 3.98%, T. Rowe Price Institutional Emerging Markets Bond (MUTF: TREBX) at 3.97% , T. Rowe Price Institutional International Bond (MUTF: RPIIX) at 3.90%, T. Rowe Price Institutional Emerging Markets Eq (MUTF: IEMFX) at 2.44%.

Returns: The T. Rowe Price Personal Strategy Balanced Fund’s 12-month return of 18.85% underperformed the Dow Jones Industrial Average’s 23.48% and S&P 500 Index’s 24.53% return during the period. Its 5 year return of 4.45% also underperformed the Dow’s 10.92% return but was on par the S&P 500’s 4.19 percent return during the period.

Other Fund Statistics

  • Total Assets: $1.69 billion (as of 6/29/11)
  • Minimum Investment: $2,500 ($1,000 IRA)
  • Fund manager: Edmund Notzon, III and Charles Shriver)
  • Manager’s Tenure: Since November 1998 and May 2011, respectively

Article printed from InvestorPlace Media, http://investorplace.com/2011/07/t-rowe-price-personal-strategy-balanced-fund-ira/.

©2014 InvestorPlace Media, LLC

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