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.
Click on the risk 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.
**This chart displays relative risk of each U.S. mutual fund listed using standard deviation of returns. Those values are provided in the bars at the top of the chart.
Methodology: We evaluate the standard deviation and its resulting placement within a specific risk/return category on an annual basis. A fund is generally placed in a risk/return category based on the 10-year standard deviation of its performance.
If a fund is less than 10 years old, the actual fund performance history is supplemented with the primary prospectus benchmark history to obtain a full 10-year history, or longest time period available up to 10 years.
For an Asset Allocation fund with less than 10 years of performance history, sub-strategy returns are used.
When a sub-strategy is less than 10 years old, the actual sub-strategy performance history is supplemented with benchmark history to obtain a full 10-year history, or longest time period available up to 10 years.
Risk return categories overlap; a fund with a standard deviation in the overlap between two categories, denoted by a plus (+), is placed so that its risk categorization is better aligned with anticipated return characteristics an investor may experience going forward at the discretion of T Rowe Price.
When a fund has a cash-like benchmark, denoted by a double plus (++), its standard deviation is estimated using only available fund returns. If the fund is less than 10 years old, benchmark returns are not used to obtain a full 10-year history because they would artificially suppress the volatility estimate.
All investments are subject to market risk, including the possible loss of principal. Standard deviation of returns, a measure of price volatility, is one measure of risk. Please consult the funds' prospectuses for a more complete discussion of the funds' risks.
See Glossary for additional details on all data elements.
The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Download a prospectus.