Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Q&A With Larry Puglia, Manager, T. Rowe Price Blue Chip Growth Fund
FYI (Click On Article Title "14 Blue Chip Stock For A Slow -Growth Era" At Top Of Google Search
If you cherry-pick at the right time, almost any mutual fund can look like a star. And sure enough, the T. Rowe Price Blue Chip Growth Fund (ticker: (PABGX ) has beaten the competition and the index over the standard time frames, including three, five, and 10 years, and since inception more than 20 years ago. But veteran manager Larry Puglia, who has run the fund since its 1993 launch, has also racked up rolling five-year returns that have beaten the competition 93% of the time. It's tough to game those numbers. Regards, Ted https://www.google.com/#q=14+blue+chip+stocks+barron's
Newbie investors might not be aware of this costly fact...advisor shares cost usually .25% more than the "original" fund. PABGX and other advisor share class funds carry this added "advisor fee" for the benefit of being NTF at many brokerages, but the brokerage recieves the added fee as their cut.
I prefer to the lower fee funds. You are almost always better off buying directly from the mutual fund company. As a way of keeping things simple I will grudgingly pay the transaction fee once for TRBCX at my brokerage and then set up a periodic purchase plan (monthly) if you want to d.c.a into or out of the fund later. This keeps fees lower than owning the advisor shares.
Fidelity also markets these pricier advisor shares. Just one more cost to avoid.
@bee: Bee is correct the ER for PABGX is 1.00%, for TRBCX it's .74%. That .26% might not seem like a lot, but over the years it adds up. Regards, Ted TRBCX: (10k) 3 Years: $237.00 5 Years: $411.00 10 Years $918.00
Comments
I prefer to the lower fee funds. You are almost always better off buying directly from the mutual fund company. As a way of keeping things simple I will grudgingly pay the transaction fee once for TRBCX at my brokerage and then set up a periodic purchase plan (monthly) if you want to d.c.a into or out of the fund later. This keeps fees lower than owning the advisor shares.
Fidelity also markets these pricier advisor shares. Just one more cost to avoid.
Regards,
Ted
TRBCX: (10k)
3 Years: $237.00
5 Years: $411.00
10 Years $918.00
PABGX: (10k)
3 Years: $318.00
5 Years: $552.00
10 Years $1,225.00