Best T. Rowe Price Mutual Funds 2012

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The top 10 T. Rowe Price mutual funds of 2012 are T. Rowe Price Equity Index 500, T. Rowe Price New Income, T Rowe Price Small-Cap Stock, etc. You may find the best stock and bond funds from this list.

Best T. Rowe Price Mutual Funds of 2012
Introduction

T. Rowe Price provides a wide selection of over 90 no load mutual funds to investors. It provides either actively managed funds or index funds. Investors can choose these funds for asset diversification. It also offers low cost option for long term investment.

There are 8 main categories in its fund family. The categories are retirement funds, domestic stock funds, domestic bond funds, tax free bond funds or municipal bond funds, international stock funds, international bond funds, money market funds, and asset allocation funds. Depending on your investment objective, you can invest for short term, getting income, long term investment for retirement, tax efficient investing, and tax-exempt.

Best T. Rowe Price Mutual Funds

The Top 10 T. Rowe Price Mutual Funds of 2012 are:
  1. T. Rowe Price Equity Index 500 (PREIX)
  2. T. Rowe Price Small-Cap Stock (OTCFX)
  3. T. Rowe Price International Equity Index (PIEQX)
  4. T. Rowe Price International Discovery (PRIDX)
  5. T. Rowe Price Real Estate (TRREX)
  6. T. Rowe Price New Income (PRCIX)
  7. T. Rowe Price Inflation Protected Bond Fund (PRIPX)
  8. T. Rowe Price Tax-Free Income Inv (PRTAX)
  9. T. Rowe Price Balanced (RPBAX)
  10. T. Rowe Price Personal Strategy Income (PRSIX)
These best TRP mutual funds are selected based on the following criteria:
  • There is no sales load and low expense fee cost
  • It has diversify portfolio
  • It has good track record
  • It has low minimum initial investment of $2,500
1. T. Rowe Price Equity Index 500 (Ticker: PREIX)

The investment objective of T. Rowe Price Equity Index 500 fund is to track the performance of the Standard & Poor’s 500 Stock Index. This index consists of large capitalization U.S. companies from various economy sectors. The fund managers are E. Frederick Bair and Ken D. Uematsu.

Rated with 3 stars, this domestic stock fund has a yield of 1.64%. The expense ratio is 0.30%. It also has a portfolio turnover rate of 5.5%. This large blend stock fund has returned 14.70% over the past 3 year, and -1.08% over the past 5 year.

As of May 2012, the top 5 stocks are AT&T, Apple, Chevron, Exxon Mobil, and General Electric. The top 3 sectors in its asset diversification are information technology (19.9%), financials (14.4%), and health care (11.2%).

Another alternative is T. Rowe Price Dividend Growth Fund (PRDGX). This PRDGX has $2.5 billion of total assets.

T. Rowe Price Small-Cap Stock Fund holdings2. T. Rowe Price Small-Cap Stock (OTCFX)

The T. Rowe Price Small-Cap Stock fund utilizes its assets to buy stocks of small companies. Gregory A. McCrickard is the fund manager since 1991. This no load fund has total net assets of $7.3 billion. The minimum initial investment is $2,500.

This small blend stock fund is rated with 5 stars and silver rating by Morningstar. The 5 year annualized return is 3.42 years. Its best 1 year total return was occurred in 2009 with 38.46%. This equity fund is available from 82 brokerages. They are Northwestern Mutual Investment Service, H&R Block Financial Advisors, Ameriprise, Raymond James, Fidelity FundsNetwork, etc.

3. T. Rowe Price International Equity Index (PIEQX)

T. Rowe Price International Equity Index fund objective is to achieve long term capital growth by tracking the performance of the FTSE Developed ex North America Index. This foreign large blend fund is managed by E. Frederick Bair and Neil Smith. It has 3.12% yield. The total net assets are $391 million. Its expense ratio fee is 0.50%.

The 3 year beta risk of this international stock fund is 1.05. The average 3 year return is 3.37%. As of May 2012, the top 3 regional exposures are Europe (59.2%), Pacific Ex Japan (20.3%), and Japan (18.6%). The top 6 holdings are BHP Billiton, BP, GlaxoSmithKline, HSBC Holdings Plc, Nestle, Novartis, and Roche Holding.

You might want to check the my previous best Vanguard funds 2012.

4. T. Rowe Price International Discovery (PRIDX)

Featured as one the Money 70 Best Funds, this T. Rowe Price International Discovery uses its assets to purchase common stocks of rapidly growing, small to medium-sized non-U.S. companies. It is managed by Justin Thomson since 1998. This no load fund has an expense ratio of 1.23%. It opens to new investors.

This foreign small/mid growth stock fund has 4 stars rating from Morningstar. Its portfolio turnover rate is 49.3%. Its year-to-date return is 4.74% (as of 6/1/2012). The average 5 year return is -2.86%. For individual retirement account (IRA), the minimum initial investment is $1,000.

According to the fund prospectus, the investment risks of this best T. Rowe Price mutual fund are active management risk, stock investing risk, foreign investment risk, etc.

If you are interested in emerging markets stock fund, you might want to check T. Rowe Price Emerging Markets Stock (PRMSX). This PRMSX fund has $6.6 billion of assets.

5. T. Rowe Price Real Estate (Ticker: TRREX)

The T. Rowe Price Real Estate fund is ranked with gold rating by Morningstar analysts. It also has a yield of 2.09%. The annual expense ratio is 0.78%. The annual holding turnover rate is 4.9%. The fund has an investment style is mid blend. David M. Lee is the fund manager since 1997.

This real estate fund has returned 3.4% over the past 1 year, 26.29% over the past 3 year, and 10.37% over the past decade. The worst 1 year total returned was occurred in 2008 with -39.08%. The 3 year beta risk is 0.96. As of May 2012, the top 5 stocks in its portfolio are AvalonBay communities, Boston Properties, Equity Residential, Federal Realty Investment Trust, and Host Hotels & Resorts.

6. T. Rowe Price New Income (MUTF: PRCIX)

T. Rowe Price New Income fund compositionThe T. Rowe Price New Income fund objective is to provide the highest income level consistent with capital preservation over time. This fund utilizes majority of assets in investment grade bonds such as U.S. government obligation, mortgage backed bond, corporate bonds, foreign bonds, and collateralized mortgage obligation. It opens to new investors. Daniel O. Shackelford has managed this fund since 2002.

This intermediate term bond fund has a yield of 3.28%. The expense ratio is only 0.59%. The top 5 sectors in its assets are mortgage bond (34.8%), corporate bond (26%), U.S. Treasury (15.3%), commercial mortgage-backed securities (5.5%), high yield (4.7%), and asset backed securities (3.3%). The 5 year average return is 7.01%.

7. T. Rowe Price Inflation Protected Bond Fund (PRIPX)

The T. Rowe Price Inflation Protected Bond Fund focuses its investment in inflation protected debt securities. The total net assets are $530 million. The annual expense ratio is 0.50%. The 12b1 fee is 0%. Its yield is 0.78%.

As of May 2012, this mutual fund has an average effective duration of 6.04 years and an average effective maturity of 8.89 years. Rated with 4 stars, it has returned 12.03% over the past year, 9.91% over the past 3 year, and 8.24% over the past 5 year. You can buy this fund from T Rowe Price brokerage account or other brokers.

Another alternative is T. Rowe Price High-Yield Fund (PRHYX). This T. Rowe Price High-Yield fund is a no load mutual fund invests in a portfolio of bonds consists of higher quality range (BB and B) of the high yield market.

8. T. Rowe Price Tax-Free Income Inv (PRTAX)

T. Rowe Price Tax-Free Income fund is another popular municipal bond mutual fund. This fund has a dividend yield of 3.87%. Its total net assets are $2.9 billion. This best TRP fund objective is to provide high income level exempt from federal income taxes by investing in long term investment grade municipal bonds. Konstantine B. Mallas is the fund manager.

As of May 2012, the top 5 sectors are transportation, health, state & local general obligation, industrial, and education. This diversified municipal bond has a 5 year annualized return of 5.57%.

9. T. Rowe Price Balanced (RPBAX)

The T. Rowe Price Balanced fund is one of best moderate allocation hybrid mutual fund. This no load fund is rated with 4 stars by Morningstar. It invests approximately 65% of total assets in U.S. and foreign common stocks and 35% in fixed-income securities. Charles M. Shriver is the fund manager. The current yield is 2.19%.

As of May 2012, the top 5 holdings of this best fund are AT&T, Amazon.com Inc, Apple, Danaher, and General Electric. The fund has an average 5 year return of 3.11%. The worst performance was occurred in 2008 with -28.43%.

10. T. Rowe Price Personal Strategy Income (PRSIX)

Ranked with Silver rating, this T. Rowe Price Personal Strategy Income fund uses its assets to purchase a diversified portfolio consisting of about 40% stocks, 40% bonds, and 20% money market securities. This conservative allocation balanced fund has $1 billion of total assets.

This best T. Rowe Price fund has returned 13.67% over the past 3 year, 4.5% over the past 5 year, and 6.47% over the past 10 year.

Disclosure: No Position

Fund Information
Fund DescriptionTickerExpense RatioYield Rating5 Year Return %10 Year Return %
T. Rowe Price Equity Index 500PREIX0.30%1.75%3-0.06%4.40%
T. Rowe Price Small-Cap StockOTCFX0.92%0%53.73%7.97%
T. Rowe Price International Equity IndexPIEQX0.50%3.51%3-6.29%4.59%
T. Rowe Price International DiscoveryPRIDX1.23%0.95%4-1.98%11.14%
T. Rowe Price Real EstateTRREX0.78%2.09%30.33%10.86%
T. Rowe Price New IncomePRCIX0.59%3.28%47.04%5.77%
T. Rowe Price Inflation Protected BondPRIPX0.50%0.74%38.25%-
T. Rowe Price Tax-Free IncomePRTAX0.53%3.87%45.60%5.14%
T. Rowe Price BalancedRPBAX0.63%2.19%42.00%5.81%
T. Rowe Price Personal Strategy IncomePRSIX0.51%2.52%43.63%6.21%

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