T. Rowe Price Blue Chip Growth
Objective And StrategyObjective
Long-term capital growth. Income is a secondary objective.
Normally Invests at least 80% of assets in the stocks of large and medium-sized blue chip growth companies--firms that, in the manager's view, are well established in their industries and have the potential for above average earnings growth. Focus on companies with leading market position, seasoned management, and strong financial fundamentals. Investment approach reflects manager's belief that solid company fundamentals (with emphasis on strong growth in earnings per share or operating cash flow) combined with a positive industry outlook will ultimately reward investors with strong investment performance. Some of the targeted companies will have good prospects for dividend growth.
* This portfolio invests in securities of foreign issuers which involves risks not typically associated with domestic issuers, including currency fluctuations and the possibility of political and economic instability. Emerging markets involve risks in addition to those generally associated with foreign securities, because political and economic structures in many emerging markets may be undergoing significant evolution and rapid development.
* This portfolio can leverage or use leveraged instruments or derivatives. Portfolios that use leverage, that is, borrow money, are subject to the risk that the cost of borrowing money to leverage will exceed the returns for the securities purchased or that the securities purchased may actually go down in value. Thus the portfolio's net asset value can decrease more quickly than if the portfolio had not borrowed. Portfolios that use leveraged instruments or derivatives such as futures, options and swap agreements, may expose the portfolio to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The more a portfolio invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments.
Large Cap Growth04/2002
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