T. Rowe Price Equity Income Fund (PRFDX)
Ticker Symbol:
PRFDX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  December
Morningstar Category  Large Value
Inception Date 10/31/1985
Tax ID 52-1424600
Investment Objective
The fund's objective is to provide substantial dividend income as well as long-term capital appreciation through investments in common stocks of established companies.
Strategy
To invest at least 80% of the fund’s net assets in common stocks, with 65% in the common stocks of well-established companies paying above-average dividends, with favorable prospects for both increasing dividends and capital appreciation.
Investor Profile
Individuals seeking a relatively conservative approach to investing in stocks who can accept the risk of loss inherent in common stock investing. Appropriate for 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
Highest
Higher
Moderate
Lower
Lowest
This fund offers a relatively conservative, value-oriented way to pursue substantial dividend income and long-term capital growth potential. It invests in common stocks of established firms that are expected to pay above-average dividends. By investing in stocks that already appear to be out of favor or undervalued, the fund should be less volatile than one investing in growth stocks. If, as the manager expects, the underpriced holdings regain favor in the marketplace, their stock prices may rise—providing capital appreciation opportunities.

The value approach carries the risk that the market will not recognize a security’s true worth for a long time, or that a stock judged to be undervalued may actually be appropriately priced. As with all equity funds, the fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings.
*Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance 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.
From MONEY® Magazine, January/February 2013 ©2013 Time Inc. MONEY and MONEY 70 are registered trademarks of Time Inc. and are used under license. MONEY and Time Inc. are not affiliated with, and do not endorse products or services of, T. Rowe Price.