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Is T. Rowe Price Personal Strategy Income (PRSIX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Mutual Fund Equity Report fund? Starting with T. Rowe Price Personal Strategy Income (PRSIX) is one possibility. PRSIX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

T. Rowe Price is based in Baltimore, MD, and is the manager of PRSIX. Since T. Rowe Price Personal Strategy Income made its debut in July of 1994, PRSIX has garnered more than $2.17 billion in assets. Charles Shriver is the fund's current manager and has held that role since May of 2011.

Performance

Investors naturally seek funds with strong performance. PRSIX has a 5-year annualized total return of 5.34% and is 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 4.74%, which places it in the middle 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. PRSIX's standard deviation over the past three years is 9.45% compared to the category average of 12.01%. The standard deviation of the fund over the past 5 years is 8% compared to the category average of 10.55%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.45, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -1.47. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, PRSIX is a no load fund. It has an expense ratio of 0.35% compared to the category average of 0.86%. From a cost perspective, PRSIX is actually cheaper than its peers.

This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.

Bottom Line

Overall, T. Rowe Price Personal Strategy Income ( PRSIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Personal Strategy Income ( PRSIX ) looks like a good potential choice for investors right now.

Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PRSIX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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