T. Rowe Price Growth Stock Fund Investment Strategy and Performance

The T. Rowe Price Growth Stock Fund is a popular investment option for those looking to grow their wealth over the long term. It's managed by a team of experienced investment professionals who use a disciplined approach to investing.

The fund's investment strategy focuses on investing in high-quality growth stocks with strong financials and competitive advantages. This approach has led to impressive returns over the years, with the fund outperforming its benchmark in many periods.

One key factor contributing to the fund's success is its emphasis on fundamental research and analysis. The investment team thoroughly examines each potential investment to ensure it meets their high standards.

With a long-term perspective and a focus on quality, the T. Rowe Price Growth Stock Fund is a solid choice for investors seeking to grow their wealth over time.

The T. Rowe Price Growth Stock fund has a significant amount of assets under management, with $12 billion, which is above the $2 billion average for the Large Growth category.

This large asset base is a double-edged sword, as it can lead to higher average expense ratios, but it also provides the fund manager with more resources to implement their active strategy.

The fund's trailing dividend yield is 0.00%, which is lower than the 0.10% category average, indicating that the fund doesn't distribute dividend income regularly.

The assets under management of a fund can have a significant impact on its performance. The fund has $12 billion in total assets, which is above the $2 billion average for the Large Growth category.

Having a large amount of assets can actually be a double-edged sword. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired.

However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

A fund's investment objective is its primary goal, which can be to generate income, long-term growth, or a combination of both.

Equity funds typically focus on long-term growth by investing in stocks, while debt funds prioritize income generation through bonds and other fixed-income securities.

Most funds are open-ended, meaning they issue and redeem units continuously, allowing investors to buy and sell shares as needed.

Fund managers actively manage their portfolios, making decisions about asset allocation, sector rotation, and individual stock selection.

A fund's net asset value (NAV) is calculated daily, reflecting the total value of its assets minus liabilities.

A fund's expense ratio is a key factor in determining its overall cost, with lower ratios generally indicating lower fees.

The Portfolio Holdings section of a fund's information is a crucial part of understanding its investment strategy.

The current portfolio date is October 31, 2024.

The portfolio is heavily weighted towards technology stocks, with two holdings each accounting for 11.66% of the portfolio.

The top 10 holdings in the portfolio account for 66.3% of the total assets.

Here's a breakdown of the top 10 holdings:

The T. Rowe Price Growth Stock fund has a clear investment strategy that's been in place for over 70 years. It's been around since 1950, when T. Rowe Price launched the fund with the goal of long-term capital growth through stock investments.

The fund focuses on growth companies, aiming to invest at least 80% of its net assets in the common stocks of a diversified group of these companies. This means you can expect a significant portion of your investment to be in US common stocks.

The fund is non-diversified, which means it can invest in a smaller number of stocks, but it also allows for more concentrated investments in its chosen growth companies.

The T. Rowe Price Growth Stock Fund has had a mixed performance over the past year, with a return of -0.08% year-to-date and 21.14% in the last 12 months.

Its annualized return over the past 10 years was 7.65%, which is lower than the S&P 500's annualized return of 11.41%. This indicates that the fund did not perform as well as the benchmark.

The fund's Sharpe ratio is 1.11, which is a measure of its risk-adjusted returns. This value is calculated based on the past 1 year of trading data and takes into account price changes and dividends.

T. Rowe Price Growth Stock Fund had a return of -0.08% year-to-date (YTD) and 21.14% in the last 12 months.

The fund's performance over the past 10 years was 7.65% annualized return, which was lower than the S&P 500's 11.41% annualized return.

This indicates that T. Rowe Price Growth Stock Fund did not perform as well as the benchmark over a long period of time.

The fund's 21.14% return in the last 12 months is a significant improvement over its -1.87% performance in the same period.

Monthly Returns give us a clear picture of a fund's performance over time. The table below presents the monthly returns of PRGFX, with color gradation from worst to best to easily spot seasonal factors.

PRGFX's best monthly return was 9.72% in January 2023. This is significantly higher than the worst monthly return of -12.26% in January 2022.

The average monthly return for PRGFX in 2024 was 1.81%. This is a slight decrease from the average monthly return of 2.04% in 2023.

Here is a breakdown of the average monthly returns for PRGFX in each year:

PRGFX's monthly returns show a significant variation from year to year, with some months experiencing returns as high as 9.72% and others as low as -12.26%.

Understanding the risk associated with the T. Rowe Price Growth Stock Fund is crucial for investors. The current volatility of the fund is 6.02%, indicating the average percentage change in its value over the past month.

This level of volatility might be manageable for some investors, but it's essential to consider your personal risk tolerance before investing. The fund's volatility chart shows the rolling one-month volatility, giving you a clear picture of its recent performance.

The average percentage change in the fund's value, either up or down, over the past month is a key indicator of its volatility. This data can help you make informed decisions about your investment portfolio.

Investors should carefully review the fund's volatility chart to understand its recent performance and make informed decisions.

The T. Rowe Price Growth Stock Fund offers a relatively low expense ratio of 0.65%, which is 34% lower than its category average. This is a significant advantage, as high annual expense ratios can reduce your rate of return.

T. Rowe Price Growth Stock has a portfolio turnover rate of 28%, which is lower than the average portfolio turnover of 45% for the Large Growth category. This suggests that the fund holds its assets for a longer period, potentially reducing turnover costs.

Here's a comparison of the fund's expense ratio with its category average over the years:

In terms of dividends, the fund has not paid any monthly dividends in recent years, with the exception of a small payment of $0.14 in 2019.

The expense ratio of Prgfx is 0.65%, which is 34% lower than its category average.

High expense ratios can reduce your rate of return, and excessive fees are difficult to overcome.

T. Rowe Price Growth Stock has a portfolio turnover rate of 28%, indicating that it holds its assets for around 0.0 years.

The average portfolio turnover is 45% for the Large Growth category, making Prgfx's turnover rate relatively low.

A high portfolio turnover can translate to higher expenses and lower aftertax returns.

Prgfx features an expense ratio of 0.63%, which is considered medium range.

Recently, Prgfx's return of 2.4% earned it a grade of D, as the Large Growth category had an average return of 3.4%.

The letter grades of A, B, C, D, and F are based on relative rankings within the investment category.

The T. Rowe Price Growth Stock Fund has a history of paying dividends, but it's not always a straightforward story. The fund has paid dividends in some years, but not in others.

In 2019, the fund paid a total dividend of $0.14, which was distributed in December. This is the only year since 2016 that the fund paid a dividend.

The fund's dividend history is as follows:

As you can see, the fund's dividend payments have been relatively small and infrequent. This might be something to consider if you're relying on dividend income from this fund.

The T. Rowe Price Growth Stock Fund has a long-term track record of delivering strong returns, with a 10-year annualized return of 12.1%.

This fund's focus on growth stocks has allowed it to outperform the S&P 500 in several periods, including the 2017 and 2019 market rallies.

With a low expense ratio of 0.75%, the T. Rowe Price Growth Stock Fund is an efficient choice for investors looking to invest in the stock market.

A manager change can have a significant impact on your grades and optimization efforts. The new manager may have different priorities and expectations, which can affect the project's direction and resources.

For example, if your team's current manager is focused on short-term results, they may not be willing to invest time and resources into long-term optimization strategies. This can lead to a decrease in overall efficiency and effectiveness.

A manager change can also bring new opportunities for growth and improvement. If the new manager has a background in optimization, they may be more receptive to implementing new strategies and technologies that can help improve your grades and efficiency.

However, it's essential to communicate effectively with your new manager to ensure a smooth transition and alignment of expectations. This can be done by scheduling regular meetings to discuss progress, goals, and any challenges that may arise.

In some cases, a manager change can even lead to a shift in team dynamics and culture. If the new manager values collaboration and open communication, it can create a more positive and productive work environment.

T. Rowe Price Growth Stock Grades is a system that evaluates the performance of the T. Rowe Price Growth Stock fund.

The fund has returned 2.4% year to date, which is 0.9 percentage points worse than the category, resulting in a grade of D.

The fund's performance over different time periods is as follows: 28.9% over the past year (grade of C), 9.6% over the past three years (grade of D), 13.1% per year over the past five years (grade of F), and 14.0% per year over the past 10 years (grade of D).

Here's a breakdown of the fund's grades over the past few years: D in 2025, C in 2024, A in 2023, F in 2022, D in 2021, C in 2020, D in 2019, C in 2018, B in 2017, D in 2016, and A in 2015.

The fund's risk measures are also worth noting: a standard deviation of 20.8%, a total risk index of 1.40 (high), and a category risk index of 1.01 (above average).

The fund's investment style is large-cap growth, with a portfolio allocation of 95.3% domestic stock and 3.6% foreign stock.

The fund's expense ratio is 0.65%, which is below average within the category, earning a grade of B.

The fund's turnover rate is 29%, which is relatively high.

The fund has two managers, with the longest tenure being 11.1 years and the average tenure being 5.6 years.

Optimization is a crucial aspect of achieving academic success. By understanding the factors that influence grades, students can make informed decisions to optimize their performance.

A key factor in optimization is time management. Students who learn to prioritize tasks and allocate time effectively can significantly improve their grades. For example, a student who spends 2 hours on homework each night is more likely to achieve better grades than one who procrastinates and completes the same amount of work in one sitting.

Effective study habits also play a significant role in optimization. Students who use active learning techniques, such as summarizing notes in their own words, are more likely to retain information and perform well on exams. This is evident in the example of a student who uses the SQ3R method to study for an exam and achieves a 90% score.

By analyzing their strengths and weaknesses, students can identify areas where they need to focus their optimization efforts. For instance, a student who struggles with math may need to allocate more time to practicing problems and seeking help from a tutor.

Our investment approach is built on the idea that solid company fundamentals combined with a positive industry outlook will lead to strong investment performance.

This approach is reflected in our focus on growth stocks, which have the potential to outperform the market over the long term. Growth stocks tend to be more volatile than other types of stocks, but that's also what makes them attractive to investors who are willing to take on a bit more risk.

Large-cap stocks, on the other hand, are generally less volatile than smaller companies, but they may not be able to achieve the same level of growth as smaller companies during strong economic periods.

Here are some key benefits of investing in our growth stock fund:

By combining these two approaches, we're able to create a fund that offers the potential for strong investment performance while also managing risk.