The “father of growth investing,” Thomas Rowe Price founded the T Rowe Price Equity Income Fund October 1985. While Price prefers a growth-oriented approach to investing, the equity income fund invests in stocks using a “conservative, value-oriented” approach. According to its investment strategy, the fund emphasizes strong dividend payout and undervaluation. With this approach, the mutual fund can reduce its risk more than just investing in growth stocks.
During the second quarter, T Rowe Price fund manager John D. Linehan, CFA, invested in Apple Inc. (NASDAQ:AAPL), Medtronic PLC (NYSE:MDT) and Diageo PLC (LSE:DGE). With these transactions, the equity income fund’s portfolio increased by 0.33%, 0.31% and 0.65%. Continue Reading »