t rowe price capital appreciation

[TuborgP]

Originally Posted by cfa-ish

PRWCX is closed to new investors. Is there a similar fund open for new investors?

Not sure about with TRowe

[mysticaltyger]

Originally Posted by cfa-ish

PRWCX is closed to new investors. Is there a similar fund open for new investors?

There really isn't anything quite as good as PRWCX open to new investors right now. T. Rowe Price also has a Balanced fund (RPBAX) but its returns, while respectable and above average compared to peers, are just not in the same league as PRWCX's. The only thing better about RPBAX is the lower expense ratio...about .10% lower...That's nice, but not enough to make it a compelling alternative.

T. Rowe Price Balanced (RPBAX) Fund Performance and Returns

The next best no-load funds to look at outside the T. Rowe Price fund family in terms of long term performance would be:

Vanguard Wellington (VWELX): Almost as cheap as an index fund. Been around forever. Great long term returns. The .26% expense ratio (.18% for balances greater than 50K) means it doesn't have to do anything exotic to achieve category beating returns. It trounces the competition with a 65% stock, 35% bond mix. The stock portion is mostly in large dividend payers. The bond portion is strictly intermediate term investment grade corporate and government bonds. Despite a somewhat unwieldy asset base of nearly $90B, its somewhat dull, value oriented style, plus its unbeatably cheap expenses, have worked in tandem to make it a long term winner.

Oakmark Equity & Income (OAKBX): Almost as good as PRWCX over the long run. Held up better in 2008 than PRWCX although it's been a bit lackluster since. Has a lower minimum initial investment requirement. Even though its performance has been boring of late, it's a great steady eddie fund for the long haul. While not a screaming bargain given its large $20B asset base, its .74% expense ratio is still reasonable, leaving it significantly lower than the category's .99% average.

Dodge & Cox Balanced (DODBX): D&C is the 2nd cheapest fund family after Vanguard. DODBX has a cheap .53% expense ratio. It stumbled badly in 2008, but otherwise has an exemplary long term track record. Has been around since 1931. Managed by a very stable, long tenured team, so you don't have to worry too much if one of the managers leaves.

FPA Crescent (FPACX): This fund's 15 and 20 year trailing returns actually match or edge out PRWCX's. But the expense ratio of 1.14% is enough to make a person gag. Its more recent returns over the last 5 years have been a bit less inspiring. The asset base is also getting large for its unique strategy. It invests in somewhat exotic securities that your typical balanced fund doesn't touch. That said, its cautious, value oriented strategy makes it a solid long term choice if you can stomach the high expense ratio. The manager, Steve Romick, has been with the fund since its 1993 inception.

Mairs & Poweer Balanced (MAPOX): This is the best performing balanced fund you've never heard of. Minnesota based Mairs & Power gets its edge from its specialty of picking stocks from the Upper Midwest region, although they'll certainly venture out of their local niche when they see good values elsewhere. The fund has consistently above average returns in most years, although it will trail the competition in really aggressive stock market rallies such as 2009's. On the flip side, it tends to easily defeat the competition in bad years, as it did in 2008. Another advantage to this fund is its small asset base, giving it flexibility and the option to buy small and mid sized companies its larger, more asset bloated peers can't touch. Very low turnover makes it a good choice for taxable accounts. The expense ratio, at .72%, is reasonable; and there's scope for it to fall further given its relatively small ~$725M asset base.

Fidelity Balanced (FBALX): This fund is one of the more aggressive contenders in the moderate allocation fund category. While FBALX can and does own some fairly conservative fare (such as Proctor and Gamble) the overall stock portion of FBALX is more growth oriented (think Google, Apple, & Facebook) than the more value oriented funds listed above. FBALX has gone through various management incarnations over the decades, but the fund has a good long term track record despite all the changes and it's currently managed by a fairly large team. A nice, low, .56% expense ratio gives it an edge.

Fidelity Puritan (FPURX): Don't be fooled. This fund isn't as buttoned down as its name suggests. Like it's sibling FBALX, it has a growth stock orientation. I really don't understand the difference between the 2 funds, since their respective investment styles seem to mirror each other. One difference seems to be FPURX's less team oriented approach. FBALX has a better long run track record, but I wouldn't count FPURX out. Since 2007, it's been managed primarily by Ramin Arani and its performance has edged out FBALX's since he took the helm. It also matches FBALX's low, .56% expense ratio.