T. Rowe Price New Income Fund (PRCIX)

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Ticker Symbol:
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  May
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 investment-grade bonds.
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, and we can purchase long-term bonds, but the portfolio’s weighted average maturity is expected to stay in a range from four to 15 years.
Investor Profile
Investors who seek an attractive level of income and are willing to accept the risk of a declining share price when interest rates rise. Appropriate for both regular and tax-deferred accounts, such as IRAs.
All States
Risk/Reward Potential*
Click on the risk/reward spectrum below to view the funds in that category
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.
*Funds are placed in general risk/return categories based on their 10-year standard deviation (as of December 2014) or, for newer funds, the standard deviation of the types of securities in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.