T. Rowe Price Fund Offers Balanced Plan of Attack

by Cynthia Wilson | July 1, 2011 2:33 am

The T. Rowe Price Personal Strategy Balanced Fund (MUTF: TRPBX[1]) 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[2]) at 4.59%, Reserve Investor -SBI at 3.98%, T. Rowe Price Institutional Emerging Markets Bond (MUTF: TREBX[3]) at 3.97% , T. Rowe Price Institutional International Bond (MUTF: RPIIX[4]) at 3.90%, T. Rowe Price Institutional Emerging Markets Eq (MUTF: IEMFX[5]) 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

  1. TRPBX: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRPBX
  2. TRHYX: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRHYX
  3. TREBX: http://studio-5.financialcontent.com/investplace/quote?Symbol=TREBX
  4. RPIIX: http://studio-5.financialcontent.com/investplace/quote?Symbol=RPIIX
  5. IEMFX: http://studio-5.financialcontent.com/investplace/quote?Symbol=IEMFX

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