All Cap Value fund seekers should consider taking a look at T. Rowe Price Cap Appreciation (PRWCX). PRWCX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Zacks categorizes PRWCX as All Cap Value, which is a segment packed with options. All Cap Value mutual funds, as the name suggests, invest across the cap spectrum in small-cap, mid-cap, and large-cap companies. However, in practice, these funds generally end up focusing on larger companies thanks to their percentage of assets. Regardless, these funds look for value positions, targeting firms whose share prices do not reflect their full worth, as well as low P/E Ratios and high dividend yields.
History of Fund/Manager
T. Rowe Price is responsible for PRWCX, and the company is based out of Baltimore, MD. Since T. Rowe Price Cap Appreciation made its debut in June of 1986, PRWCX has garnered more than $30.20 billion in assets. David R. Giroux is the fund's current manager and has held that role since June of 2006.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 13.3%, 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 11.91%, which places it in the top third during this time-frame.
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, PRWCX's standard deviation comes in at 12.61%, compared to the category average of 14.26%. Looking at the past 5 years, the fund's standard deviation is 10.11% compared to the category average of 11.82%. This makes the fund less volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PRWCX has a 5-year beta of 0.64, which means it is likely to be less 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. The fund has produced a positive alpha over the past 5 years of 2.35, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, PRWCX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 1.13%. PRWCX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Overall, T. Rowe Price Cap Appreciation ( PRWCX ) 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.
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