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5 Best Performing T. Rowe Mutual Funds of Q1

In the first quarter of 2017, T. Rowe Price managed to attract around $700 million in investments, a trend, which is expected to continue even in the ongoing quarter. Along with steady inflows in its mutual funds, the company also reported strong revenue and earnings growth in the previous quarter.

Recently, T. Rowe featured at third place in the Securities and Asset Management Industry category on Fortune Magazine’s “World’s Most Admired Companies” 2017 list.

T. Rowe Price’s Performance in Q1

T. Rowe’s total assets under management (AUM) increased 12.7% year over year to $861.6 billion in the first quarter of this year. This also represents a 6.3% increase from the previous quarter’s figure. The company reported adjusted earnings per share of $1.18, up 16.8% from the year-ago figure. Also, quarterly revenue increased 12% year over year and 2.2% quarter over quarter to $1.11 billion.

Additionally, the company posted net inflows of $700 million, which was significantly better in contrast to net outflows of $5 billion reported in the last quarter of 2016. Moreover, the company reported net inflows of $2.2 billion in its mutual funds in the first quarter, backed by strong inflows of $600 million in money market funds and $2.6 billion in fixed-income funds.

T. Rowe Price Funds at a Glance

T. Rowe Price is a renowned mutual fund family focused on fulfilling the needs of its investors with an effective investment approach, low expenses and strong objective guidance. In its recent global economic outlook, T. Rowe focused on global and domestic equity funds as well as emerging markets and global fixed income bond funds.

Moreover, the company is focused on launching more low cost funds and strives to shift to passive funds this year. It aims to provide strong returns by investing primarily in debt securities, domestic securitized bonds and several other debt instruments.

Buy These 5 Best-Ranked T. Rowe Mutual Funds

Founded in 1937 and headquartered in Baltimore, T. Rowe Price prides itself in having more than 6,000 employees, including 519 investment professionals across the world. Also, T. Rowe Price claims that more than 85% of its mutual funds provide better returns than its Lipper peer group average for a 10-year period.

This publicly owned investment management firm offers a variety of mutual funds, sub-advisory services and separate account management for individual and institutional investors, retirement plans and financial intermediaries. The company operates worldwide from 16 offices in the U.S. and other nations.

We have selected five mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). These funds have encouraging first quarter returns. Also, these funds have low expense ratios and minimum initial investment within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.

T. Rowe Price QM US Small-Cap Growth Equity PRDSX seeks capital appreciation over the long run. PRDSX invests the lion’s share of its assets in securities of growth oriented companies with small size market capitalizations. Though PRDSX primarily focuses on acquiring securities of domestic companies, it may also invest not more than 10% of its assets in securities of companies located in foreign lands.

PRDSX’s returned 6.7% in the first quarter. Annual expense ratio of 0.81% is lower than the category average of 1.30%.

T. Rowe Price New Horizons PRNHX seeks capital appreciation over the long term. PRNHX maintains a diversified portfolio by investing in emerging growth companies having small market capitalization. The fund invests in companies that are expected to have above-average growth potential.

PRNHX’s returned 10.1% in the first quarter. Annual expense ratio of 0.79% is lower than the category average of 1.30%.

T. Rowe Price Growth Stock Fund No Load PRGFX invests a large share of its assets in common stocks of companies with strong growth prospects. Though the fund generally invests in securities of domestic companies, PRGFX may also invest in common stocks of non-U.S. companies. The fund seeks appreciation of capital for the long run.

PRGFX’s returned 11.1% in the first quarter. Annual expense ratio of 0.68% is lower than the category average of 1.21%.

T. Rowe Price Japan PRJPX seeks capital appreciation for the long run by investing the majority of its assets in securities of companies which are based in Japan. PRJPX invests in multiple Japanese companies and industries, irrespective of their size.

PRJPX’s returned 8.7% in the first quarter. Annual expense ratio of 1.02% is lower than the category average of 1.33%.

T. Rowe Price Tax-Free High-Yield PRFHX seeks current income which is exempted from federal income tax. The fund invests the majority of its assets in high yield debt securities, which are free from federal income tax. It may utilize not more than 10% of its assets to purchase bonds in default. 

PRFHX’s returned 0.9% in the first quarter. Annual expense ratio of 0.69% is lower than the category average of 1.10%.

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