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Is T. Rowe Price Diversified Mid-Cap Growth (PRDMX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mid Cap Growth fund? Starting with T. Rowe Price Diversified Mid-Cap Growth (PRDMX - Free Report) is one possibility. PRDMX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRDMX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
PRDMX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Diversified Mid-Cap Growth debuted in January of 2004. Since then, PRDMX has accumulated assets of about $1.12 billion, according to the most recently available information. Donald J. Peters is the fund's current manager and has held that role since January of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 12.64%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.45%, 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. PRDMX's standard deviation over the past three years is 20.49% compared to the category average of 17.8%. Looking at the past 5 years, the fund's standard deviation is 21.99% compared to the category average of 19.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.12, the fund is likely to be more volatile than the market average. 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. PRDMX has generated a negative alpha over the past five years of -4.48, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRDMX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1%. From a cost perspective, PRDMX is actually cheaper than its peers.
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 considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Diversified Mid-Cap Growth ( PRDMX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Diversified Mid-Cap Growth ( PRDMX ) looks like a good potential choice for investors right now.
For additional information on the Mid Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PRDMX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Diversified Mid-Cap Growth (PRDMX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mid Cap Growth fund? Starting with T. Rowe Price Diversified Mid-Cap Growth (PRDMX - Free Report) is one possibility. PRDMX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRDMX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
PRDMX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Diversified Mid-Cap Growth debuted in January of 2004. Since then, PRDMX has accumulated assets of about $1.12 billion, according to the most recently available information. Donald J. Peters is the fund's current manager and has held that role since January of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 12.64%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.45%, 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. PRDMX's standard deviation over the past three years is 20.49% compared to the category average of 17.8%. Looking at the past 5 years, the fund's standard deviation is 21.99% compared to the category average of 19.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.12, the fund is likely to be more volatile than the market average. 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. PRDMX has generated a negative alpha over the past five years of -4.48, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRDMX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1%. From a cost perspective, PRDMX is actually cheaper than its peers.
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 considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Diversified Mid-Cap Growth ( PRDMX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Diversified Mid-Cap Growth ( PRDMX ) looks like a good potential choice for investors right now.
For additional information on the Mid Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PRDMX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.