Mid Cap Value fund seekers may want to consider taking a look at T. Rowe Price Mid-Cap Value (TRMCX). TRMCX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
TRMCX is one of many Mid Cap Value mutual funds to choose from. Mid Cap Value funds usually invest in companies with a stock market valuation between $2 billion and $10 billion; these medium-sized firms possess strong value and income opportunities for investors.
History of Fund/Manager
T. Rowe Price is responsible for TRMCX, and the company is based out of Baltimore, MD. T. Rowe Price Mid-Cap Value made its debut in June of 1996, and since then, TRMCX has accumulated about $4.15 million in assets, per the most up-to-date date available. The fund’s current manager, Vincent DeAugustino, has been in charge of the fund since May of 2022.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.44%, 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 16.46%, 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. Compared to the category average of 11.72%, the standard deviation of TRMCX over the past three years is 16.02%. Looking at the past 5 years, the fund’s standard deviation is 17.18% compared to the category average of 13.52%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.91, which means it is hypothetically less volatile than 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. Over the past 5 years, the fund has a negative alpha of -1.31. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For 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, TRMCX is a no load fund. It has an expense ratio of 0.81% compared to the category average of 0.94%. Looking at the fund from a cost perspective, TRMCX is actually cheaper than its peers.