Financial Analysis
T. Rowe Price Blue Chip Growth Fund- TRBCX
1. This fund is classified as a growth fund and invests in Large-Cap Growth Stocks and is an Open-End Mutual Fund (which means new shares are allowed to be created).
2. The goal of the fund is long-term capital growth with a secondary goal of income. It invests a majority of its assets in large to medium sized companies.
3. There are no loads involved for investing in this fund. There are, however, other expenses associated with investing in the fund. For all accounts under $10,000, there is a $20 annual account fee payable to T. Rowe Price. If the account has a value greater than $50,000 this account fee is waived. The fee is also waived if the fund is held in an employer-sponsored retirement plan in which T. Rowe Price is the custodian. There are also no 12b-1 Fees. One important fee to look at is the Expense Ratio. The expense ratio is an annualized of total assets to represent the amount that the shareholders will pay for ongoing expenses like management fees, etc. The Expense Ratio for TRBC is 0.76%.
4. The general risks associated with the fund are that of the general stock market. Since the fund invests most of its assets in stocks, there is always the risk of market fluctuations. Stocks can lose value which is definitely a risk considering the concentration of the fund is in stocks. Specific risks of the fund include the management risk. There is a risk that the manager, Larry J. Puglia, could not manage the fund properly or choose assets that have a chance of facing a downturn, all of which would be bad for investors. Other risks concern the damper that the economy has had on the growth of companies, especially in other countries. The amount of assets held in foreign companies is relatively small (4.4%), but it is still a risk specific to the fund.
5. The turnover rate tells investors what percentage of the portfolio value was bought and sold throughout the year. The higher the turnover rate, the higher
1. This fund is classified as a growth fund and invests in Large-Cap Growth Stocks and is an Open-End Mutual Fund (which means new shares are allowed to be created).
2. The goal of the fund is long-term capital growth with a secondary goal of income. It invests a majority of its assets in large to medium sized companies.
3. There are no loads involved for investing in this fund. There are, however, other expenses associated with investing in the fund. For all accounts under $10,000, there is a $20 annual account fee payable to T. Rowe Price. If the account has a value greater than $50,000 this account fee is waived. The fee is also waived if the fund is held in an employer-sponsored retirement plan in which T. Rowe Price is the custodian. There are also no 12b-1 Fees. One important fee to look at is the Expense Ratio. The expense ratio is an annualized of total assets to represent the amount that the shareholders will pay for ongoing expenses like management fees, etc. The Expense Ratio for TRBC is 0.76%.
4. The general risks associated with the fund are that of the general stock market. Since the fund invests most of its assets in stocks, there is always the risk of market fluctuations. Stocks can lose value which is definitely a risk considering the concentration of the fund is in stocks. Specific risks of the fund include the management risk. There is a risk that the manager, Larry J. Puglia, could not manage the fund properly or choose assets that have a chance of facing a downturn, all of which would be bad for investors. Other risks concern the damper that the economy has had on the growth of companies, especially in other countries. The amount of assets held in foreign companies is relatively small (4.4%), but it is still a risk specific to the fund.
5. The turnover rate tells investors what percentage of the portfolio value was bought and sold throughout the year. The higher the turnover rate, the higher