If investors are looking at the Allocation Balanced fund category, T. Rowe Price Retirement Balanced (TRRIX) could be a potential option. TRRIX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
The world of Zacks’ Allocation Balanced funds is an area filled with options, such as TRRIX. These funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. For investors, Allocation Balanced funds can provide an entry point into diversified mutual funds, and present core holding options for a portfolio of funds.
History of Fund/Manager
TRRIX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Retirement Balanced made its debut in September of 2002, TRRIX has garnered more than $1.85 billion in assets. A team of investment professionals is the fund’s current manager.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 8.3%, and it sits 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 9.38%, which places it in the top 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. TRRIX’s standard deviation over the past three years is 9.01% compared to the category average of 13.31%. The fund’s standard deviation over the past 5 years is 7.21% compared to the category average of 10.94%. This makes the fund less volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 0.45, which means it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TRRIX’s 5-year performance has produced a negative alpha of -0.02, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, TRRIX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.89%. From a cost perspective, TRRIX 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.
Overall, T. Rowe Price Retirement Balanced ( TRRIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Retirement Balanced ( TRRIX ) looks like a good potential choice for investors right now.
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