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

Access the strong growth potential of small caps.

Call 800-566-5611 to speak to an investment specialist about the
QM U.S. Small-Cap Growth Equity Fund.

Ticker Symbol:
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  December
Morningstar Category  Small Growth
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.
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.
* 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.