T. Rowe Price (TROW) might not be the biggest fund factory out there … but T. Rowe Price Funds sure are getting the job done for retail investors planning for retirement.
T. Rowe Price itself reported good fourth-quarter earnings in late January as 2013 proved to be a year of polar opposites — T. Rowe Price mutual funds saw net cash inflows of $10.2 billion, while institutional funds experienced net cash outflows of $22.2 billion.
Until T. Rowe Price can win back some of the institutional clients it has lost, mutual funds are the star attraction.
According to Lipper, 77% of T. Rowe Price funds outperformed their peers over a five-year period, with 78% of them rated four or five stars by Morningstar.
That, my friends, is impressive.
Conveniently, the T. Rowe Price website for individual investors breaks down T. Rowe Price mutual funds into five categories: target-date funds, stock funds, international funds, bond & money market funds and asset allocation funds.
An investor would be well-served owning one fund in each of these categories to diversify their portfolio, so we’ll look at a total of five T. Rowe Price funds worth owning.