T. Rowe Price New Income Fund (PRCIX)
Ticker Symbol:
PRCIX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  November
Morningstar Category  Intermediate-Term Bond
Inception Date 08/31/1973
Tax ID 52-0980581
Investment Objective
The fund seeks the highest level of income consistent with preservation of capital over time by investing primarily in marketable debt securities.
Strategy
Invests at least 80% of the total assets in income-producing investment-grade debt securities that possess what we believe have favorable total return (income plus changes in principal characteristics). There are no maturity restrictions, so the fund can purchase long-term bonds.
Availability
All States
Risk/Reward Potential*
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Moderate
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The New Income Fund seeks to provide investors high current income potential and can be used to diversify an equity portfolio. Since the fund has a fairly long average maturity, it offers higher yield potential than money market or shorter-term bond funds but with more volatility. The portfolio is broadly diversified, investing in corporate bonds, Treasuries, government securities, and mortgage-backed issues.

Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. There is also a chance that some of the fund's holdings will have their credit ratings downgraded or will default.
* Annually we evaluate the standard deviation of each US mutual fund listed and its resulting placement within specific risk/return categories.

Methodology: If a fund is at least 5 year old, it is generally placed in risk/return categories based on the standard deviation of its performance for the longest period of its calendar year returns; the longest time period used for analysis is 10 years (regardless of the fund's inception). If a fund is less than 5 years old, we generally use the fund's primary benchmark disclosed in its prospectus as a proxy and follow the same process of using 10-year standard deviation of the benchmark, or longest time period available. The firm at its sole discretion may show a fund in a higher risk category based on qualitative or other factors that may differ from this methodology.
See Glossary for additional details on all data elements.