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Top 5 Zacks #1 Ranked T. Rowe Price Mutual Funds - Best of Fund Family

By Zacks.com May 15, 2012, 03:06:38 PM EDT

Founded in 1937 by Thomas Rowe Price, Jr. T. Rowe Price is one of the oldest investment management firms in the U.S. With over $555 billion of assets under management, the company offers a wide range of mutual funds, sub-advisory and separate account management services. It relies on fundamental, proprietary research to create a culture of value-added, active fund management. The company's adherence to stated investment objectives regardless of prevailing market conditions secures the long term integrity of its client portfolios.

Below we will share with you 5 top rated T. Rowe Price mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these funds to outperform their peers in the future.  To view the Zacks Rank and past performance of all T. Rowe Price funds, investors can click here to see the complete list of funds .

T. Rowe Price Diversified Small Cap Growth ( PRDSX ) invests the majority of its assets in small cap companies which are part of the MSCI US Small-Cap Growth Index. The fund aims at holding a widely diversified portfolio, with the top 25 holdings mot making up a large share of its assets. The fund has a three year annualized return of 32.26%.

The T. Rowe Price mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.10% compared to a category average of 1.46%.

T. Rowe Price Tax-Free High-Yield ( PRFHX ) seeks current income which is not subject to federal income tax. The fund invests a large share of its assets in high default risk or speculative bonds. It may utilize no more than 10% of its assets to purchase bonds in default. The fund has a three year annualized return of 13.7%.

James M. Murphy is the fund manager and he has managed this T. Rowe Price mutual fund since 2002.

T. Rowe Price New Asia ( PRASX ) invests the majority of its assets in the South East Asian region, India and China. The fund may also look to invest in securities from Vietnam and Pakistan. The fund has a three year annualized return of 34.68%.

As of March 2012, this T. Rowe Price mutual fund held 94 issues, with 4.91% of its total assets invested in Samsung Electronics Co Ltd.

T. Rowe Price Corporate Income ( PRPIX ) seeks high income. The fund invests a large share of its assets in corporate debt. It may also invest up to 25% of its assets in a wide range of securities including convertible debt and preferred stock. The fund has a three year annualized return of 13.95%.

The T. Rowe Price mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.64% compared to a category average of 0.95%.

T. Rowe Price Real Estate ( TRREX ) invests the majority of its assets in real estate companies. The fund focuses on acquiring equity securities and does not own real estate directly. The fund has a three year annualized return of 45.71%.

David M. Lee is the fund manager and he has managed this T. Rowe Price mutual fund since 1997.

To view the Zacks Rank and past performance of all T. Rowe Price mutual funds, investors can click here to see the complete list of funds .

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds .


View All Zacks #1 Ranked Mutual Funds
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


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