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T. Rowe Price Fund Offers Balanced Plan of Attack

Diversification is the name of the game for this investment


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

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