This is a continuation of The Mutual Fund Series here on JosephSangl.com.
During each part of this weekly series, we will be looking at a specific mutual fund company.
Today’s company is T. Rowe Price.
T. Rowe Price is an independent, global investment company founded in 1937 by Thomas Rowe Price, Jr. The company is based in Baltimore, Maryland, with offices in 12 countries around the world. T. Rowe Price currently manages $419 Billion in assets.
What I Like About T. Rowe Price
- Award-Winning Company – T. Rowe Price is recognized by Morningstar as the number one mutual fund company based on fund return, stewardship, manager tenure, manager investment, and retention. The company has also been esteemed as having consistently strong risk-adjusted performance and was named Best Overall Large Company by Lipper.
- Community Involvement – T. Rowe Price is greatly involved in their surrounding communities by volunteering, giving, leading, and educating. The T. Rowe Price Associates Foundation was founded in 1981 and it was established to provide assistance for nonprofit organizations, educate families, and provide scholarships.
- Retirement Plan Management – T. Rowe Price has an excellent website that provides the client with account access, do-it-yourself planning tools, and target-date portfolios that allows you to invest and manage based on time. The company offers four retirement choices: T. Rowe Price Mutual Funds, One-Step Portfolios, Open Architecture (combined T. Rowe Price funds with outside funds), and Tradelink (self-directed). T. Rowe Price gives their clients many options for investing with exceptional website tools.
- 100% No-Load! – T. Rowe Price provides investors with over 90 mutual funds with no front-end or back-end loads, as well as low fee rates.
- Minimum Investment Options – T. Rowe Price Mutual Funds have a minimum investment of $1,000 or $2,500 depending on the fund. HOWEVER, they do offer a Systematic Purchase Minimum that allows you to invest $50 each month. This is a great option for those that don’t have $1,000 or $2,500 to put down on an investment!
What I Would Like To See Improved At T. Rowe Price
- Commissions Fees – T. Rowe Price charges higher stock brokerage commissions fees than other brokers. The cost is $20 for 1,000 total shares and 2 cents more for every share above 1,000. An investor could also be charged $118 if assistance is needed to make a stock trade.
T. Rowe Price Mutual Funds I Own
I do not currently own any T. Rowe. Price mutual funds.
T. Rowe Price Mutual Fund To Look At
T. Rowe Price New Horizons Fund [Ticker: PRNHX] – This fund’s objective is to provide long-term growth of capital by investing in small, rapidly growing companies. The inception date of this fund was June 3, 1960. It has an expense ratio of 0.85%, an average annual return since inception of 10.69%, and requires a minimum investment of $2,500. Morningstar has given this fund a 4-star rating.
NOTE: Clemson student Anna Briscoe, a senior majoring in Economics with a minor in Financial Management has been so gracious to research and write the majority of this post.