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Everything to Know About T. Rowe Price

Health Sciences Fund (PRHSX)

 

Are you thinking about investing, but don’t know where you should invest? With so many different options available, it can be difficult to choose. We have gathered some information on a mutual fund that might interest any investor, new or old. Let’s learn about T. Rowe Price Health Sciences Fund (PRHSX).

Who is T. Rowe Price?

Rowe Price Group, Inc. is an American global investment management firm. Established in 1937 by Thomas Rowe Price, Jr., the firm is headquartered in Baltimore, Maryland. Baltimore is home to 5,000 employees domestically and they also boast sixteen international offices which serve clients in forty seven countries around the world.

In 2020, the company was named one of the most admired companies by Fortune magazine. Between 2010 and 2020, T. Rowe Price managed to grow its assets under management from $400 billion to $1.6 trillion. Annual revenues increased to $6.2 billion, up 10.2 percent over the course of the decade. 

PRHSX

The fund launched in December 1995 and, as of June 2022, has over $14 billion in assets invested in 185 different holdings. PRHSX carries a moderate risk, but may be susceptible to additional risks due to its focus in the healthcare sector. 

This mutual fund seeks holdings in a very specific area and holds some of the biggest names in the healthcare research and development industry. Familiar names include: UnitedHealth Group Inc., AstraZeneca, Thermo Fisher Scientific Inc., and Danaher Corp.

Investing and Return Potential

PRHSX seeks to invest at least eighty percent of its net assets. Currently the fund has an expense ratio of 0.77 percent, which is considered to be on the higher side. To invest in this fund, you’ll need to make a minimum investment of $2,500. PRHSX has returned 16.76 percent over the past decade. 

Even in a bad year, the fund has still returned almost 4 percent, which is impressive. Long-term investors have seen a positive return over the past several years. While its fees are somewhat higher than those of its peers, this fund will beat the competition nearly every time, making the fees worth it in the long run.

The Takeaway

If you’d like to invest in a mutual fund that has outperformed the competition consistently, then this is the one for you. It is important to consider that given its strong foundation in the healthcare area, you may find this stock is vulnerable to risks that other mutual funds won’t run into. If you’re feeling adventurous and confident and don’t mind an additional risk, that won’t be an issue for you.

Rowe Price is one of the biggest names in mutual funds. The company has strong roots and is positioned to remain a big player in the game for many years to come. PRHSX is a solid choice for any investor.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

FJS

Author FJS

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