Equities

T. Rowe Price Blue Chip Growth Fund

August 30, 2017
Investing in leading companies within industries that are poised for long-term growth.

Key Points

  • Blue chip stocks have tended to offer consistent performance and stability.
  • Historically, the T. Rowe Price Blue Chip Growth Fund has exceeded its benchmarks.
  • Because the fund invests in growth stocks, its share price could decline further in down markets than that of a value-focused fund.

The T. Rowe Price Blue Chip Growth Fund (TRBCX) gives individuals a low-cost way to invest in blue chip companies that enjoy strong market positions, seasoned management teams, solid fundamentals, and sustainable, above-average earnings growth and profitability. The fund’s primary objective is to provide long-term growth of capital, with income as a secondary objective. It pursues capital appreciation by investing in large and mid-cap companies (mostly domestic) in industries T. Rowe Price believes are poised for long-term growth. The fund is broadly diversified across sectors and industries, which should help to minimize volatility.

A solid track record

In addition to its outstanding near-term performance the fund has posted solid longer-term returns (see “Strong Long-Term Performance" chart). The Blue Chip Growth Fund has received a 5-star Morningstar RatingTM for its Overall Morningstar RatingTM and for the three- and five-year periods, and a 4-star Morningstar Rating for the 10-year period ended June 30, 2017.* As with any stock fund, the Blue Chip Growth Fund is subject to market risk. Growth stocks can be volatile because these companies usually invest a high proportion of earnings in their business, and earnings disappointments often lead to sharply falling prices.  

Strong Long-Term Performance

The T. Rowe Price Blue Chip Growth Fund has consistently exceeded its peer group as of 6/30/17.

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1Fund inception date 6/30/93.  

Current performance may be higher or lower than quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, visit troweprice.com/bcg. The fund’s expense ratio as of its fiscal year ended 12/31/16 was 0.72%. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

Source for Lipper data: Lipper Inc.

Diversification Across Sectors

The T. Rowe Price Blue Chip Growth Fund is focused on owning high-quality companies that generate durable, sustainable earnings and cash flow growth.

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Data as of 6/30/17.

All mutual funds are subject to market risk, including possible loss of principal.

*Morningstar rated the Blue Chip Growth Fund among 1,277, 1,277, 1,152, and 803 large growth funds for the overall rating and the 3-, 5-, and 10-year periods (as applicable) ended 6/30/17, respectively. The Morningstar Rating TM for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. Source for Morningstar data: © 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

This material has been prepared by T. Rowe Price for general and educational purposes only. This material does not provide fiduciary recommendations concerning investments or investment management. T. Rowe Price, its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material.