T. Rowe Price QM U.S. Small-Cap Growth Equity Fund (PRDSX)

Access the strong growth potential of small caps.

Ask our investment specialists if the QM U.S. Small-Cap Growth Equity Fund is right for your portfolio. Call 800-566-5611.

Ticker Symbol:
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Formerly T. Rowe Price Diversified Small-Cap Growth Fund
Fund Objective
Quick Stats
Fiscal Year End  December
Morningstar Category  
Inception Date 06/30/1997
Tax ID 52-2044216
Investment Objective
The fund seeks long-term growth of capital by investing primarily in common stocks of small growth companies.
The fund will normally invest at least 80% of net assets (including any borrowings for investment purposes) in equity securities issued by small-cap U.S. growth companies. The fund seeks to invest in a broadly diversified portfolio of securities to minimize the effects of individual security selection on fund performance.

The "QM" in the fund's name reflects the concept that the fund employs a "quantitative management" strategy relying on quantitative models developed by T. Rowe Price to help identify stocks that could be included in the portfolio. Based on these models and fundamental research, the portfolio is typically constructed in a "bottom up" manner which takes into consideration various stock characteristics, such as projected earnings and sales growth rates, valuation, capital allocation, and earnings quality. We also consider portfolio risk characteristics in the process of portfolio construction. Sector allocations are generally in line with those of the MSCI US Small Cap Growth Index, with occasional small overweights or underweights to a particular sector. As a result, the fund may at times invest significantly in technology stocks similar to the index.
Investor Profile
The fund could be appropriate for a portion of your stock investments if you seek capital growth over a long period and are comfortable with the fundís risk profile. The fund can be used in both regular and tax-deferred accounts, such as IRAs.
Risk/Reward Potential*
Click on the risk/reward spectrum below to view the funds in that category
Small companies may offer greater opportunity for capital appreciation than larger, more established companies. Also, the fundís broad diversification may make it less volatile than small-cap growth funds that have more concentrated portfolios. In addition, portfolio turnover should be lower than in the average small-cap fund, which may reduce the investorís potential capital gains tax exposure.

The fundís share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Investing in small companies involved greater risk than is customarily associated with larger companies. In addition, growth stocks can have steep price declines if their earnings disappoint investors. Finally, the fundís investment approach could fall out of favor with the investing public, resulting in lagging performance versus other types of stock funds.
* Funds are placed in general risk/return categories based on their 10-year standard deviation (as of December 2015) 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.