Is T. Rowe Price Blue Chip Growth Fund (TRBCX) a Strong Mutual Fund Pick Right Now?
Large Cap Growth fund seekers should consider taking a look at T. Rowe Price Blue Chip Growth Fund (TRBCX). TRBCX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveTRBCX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.History of Fund/ManagerTRBCX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Blue Chip Growth Fund debuted in June of 1993. Since then, TRBCX has accumulated assets of about $32.43 billion, according to the most recently available information. The fund is currently managed by Paul Greene who has been in charge of the fund since October of 2021.PerformanceInvestors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 14.22%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 32.5%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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. TRBCX's standard deviation over the past three years is 16.32% compared to the category average of 12.85%. Over the past 5 years, the standard deviation of the fund is 19.68% compared to the category average of 14.48%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.13, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -3.94, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining 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 mostly on equities that are traded in the United States.As of the last filing date, the mutual fund has 75.24% of its assets in stocks, which have an average market capitalization of $939.45 billion. The fund has the heaviest exposure to the following market sectors:TechnologyRetail TradeWith turnover at about 19.6%, this fund is making fewer trades than comparable funds.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TRBCX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 0.95%. So, TRBCX is actually cheaper than its peers from a cost perspective.This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, T. Rowe Price Blue Chip Growth Fund ( TRBCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, this fund looks like a great potential choice for investors right now.Want even more information about TRBCX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (TRBCX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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