T. Rowe Price Short-Term Bond Fund (PRWBX)
Ticker Symbol:
PRWBX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  November
Morningstar Category  Short-Term Bond
Inception Date 03/02/1984
Tax ID 52-1332477
Investment Objective
The fund seeks a high level of income consistent with minimal fluctuation in principal value and liquidity.
Strategy
Invests primarily in a diversified portfolio of short- and intermediate-term, investment-grade debt securities. The fundís average effective maturity will not exceed three years.
Availability
All States
Risk/Reward Potential*
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Higher
Moderate
Lower
Lowest
Investors have the opportunity to earn higher income than less volatile money market funds offer, with lower risk than higher-yielding longer-term bond funds. The Short-Term Bond Fund provides some diversification since it can invest in corporate bonds, U.S. government bonds, asset-backed securities, and mortgage-backed securities.

Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise from current levels, bond fund total returns will decline and may even turn negative in the short term. There is also a chance that one of the fund's holdings will have its credit rating 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.