Is T. Rowe Price US Equity Research (PRCOX) a Strong Mutual Fund Pick Right Now?

If investors are looking at the Large Cap Blend fund category, T. Rowe Price US Equity Research (PRCOX) could be a potential option. PRCOX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectivePRCOX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a 'buy and hold' mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.History of Fund/ManagerT. Rowe Price is responsible for PRCOX, and the company is based out of Baltimore, MD. The T. Rowe Price US Equity Research made its debut in November of 1994 and PRCOX has managed to accumulate roughly $8.02 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 15.24%, and is in the top 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 20.5%, 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. Over the past three years, PRCOX's standard deviation comes in at 14.73%, compared to the category average of 14.41%. The standard deviation of the fund over the past 5 years is 16.09% compared to the category average of 13.95%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.01, so investors should note that it is hypothetically as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 0.41, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.HoldingsInvestigating 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.Currently, this mutual fund is holding 87.68% in stocks, and these companies have an average market capitalization of $593.50 billion. The fund has the heaviest exposure to the following market sectors:TechnologyFinanceTurnover is 54.2%, which means, on average, the fund makes fewer trades than comparable funds.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRCOX is a no load fund. It has an expense ratio of 0.46% compared to the category average of 0.90%. From a cost perspective, PRCOX is actually cheaper than its peers.While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to 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 US Equity Research ( PRCOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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Click to get this free report Get Your Free (PRCOX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks