Investing in the T Rowe Price Science and Technology Fund (PRSCX) may be beneficial if you are interested in long-term capital appreciation. This fund is managed by Ken Allen and seeks to gain exposure to the industries involved in advancing technology.
Ken Allen is the portfolio manager
Currently, Ken Allen is the portfolio manager of the T Rowe Price Science and Technology Fund. He also serves as the chairman of the Science and Technology Equity Strategy Investment Advisory Committee.
The T Rowe Price Science and Technology Fund has a five-year average return of 22.5%. It has an asset of $5.4 billion. The fund has positions in Amazon.com (AMZN), LNKD, VIPshop Holdings, and the PC hardware and software industries. The fund has a market capitalization of approximately $30 billion.
There are several major trends in the technology industry. These include cloud computing, digitization, and big data analytics. Companies will need to adopt these technologies to stay competitive. There is a rapid rate of change in the industry, which will create new opportunities for early adopters. However, if you are on the wrong side of this trend, you could be left behind.
T. Rowe Price Communications & Technology Fund
Investing in common stocks of telecommunications and technology companies is a safe bet. The fund also boasts a small bet in the stock market’s new kid on the block, social networking. Its long list of holdings include names such as Verizon, AT&T, Apple, and Amazon, among others. The fund isn’t without its qualms however, with its relatively high expenses. The fund also has the dubious distinction of having the largest active contract expiration date of all time.
The fund has one other claim to fame: its rogues club, an aptly named group of contraversial investors. The fund’s minimum investment requirement is waived for certain types of accounts, including eligible retirement plans. The fund also carries a small fee for trading. Aside from fees, the fund’s only other major cost is its management fee.
T. Rowe Price Health Sciences Fund
During 2013, the Health Sciences Strategy had $1.8 billion in inflows into the fund. This pace of inflows has dramatically increased in recent years. The investment objective of the fund is to invest in common stocks of health sciences companies. The fund’s manager selects companies based on macro investment themes. He also conducts bottom-up company research to identify the companies that are best suited for bringing new technologies to market.
The Health Care Fund seeks long-term capital growth. It invests in common stocks of companies in the health care sector. The portfolio is designed to have less exposure to the broader stock market, and instead focus on health care companies with attractive valuations. It also has a high conviction decision-making process. The fund invests in companies that have faster-growing earnings.
T. Rowe Price Science & Technology Fund (PRSCX) has a neutral Zacks Mutual Fund rank
Having a high short-term performance isn’t always a good indication of a fund’s long-term performance. It’s also worth considering the risks of owning a fund. This may include charges, fees and expenses. You can learn more about the risks of investing in a mutual fund by reading the prospectus.
The S&P 500 is a common benchmark for stock funds. It’s also the most popular benchmark for bond funds. A fund with a price-to-earnings ratio below a certain level can be considered a value fund. Likewise, a fund with a price-to-earnings above a certain level can be considered a growth fund.
The Zacks omselicus is the sum of a fund’s three-month, six-month and 12-month returns. It’s a measure of how consistently a fund performs over time. It’s also a measure of how well the fund has performed relative to its peers.
T. Rowe Price Science & Technology Fund (PRSCX) seeks long-term capital appreciation
Designed to provide long-term capital appreciation, the T Rowe Price Science and Technology Fund (PRSCX) invests in the common stocks of companies that are expected to benefit from technology. The fund holds blue chip firms as well as unseasoned companies developing new technologies.
The portfolio manager uses a bottom-up stock selection approach to identify secular themes and long-term trends. However, the manager reserves the right to change his views at any time. Consequently, his views should not be viewed as a guarantee of future investment performance.
The fund has average downside risk. However, there is significant volatility due to the intense competition for market share among technology companies. This may cause sharp declines in prices. In addition, the fund may invest in securities subject to restrictions on resale. These may result in substantial delays and additional costs.
