Is This Fund a Good Choice for Me?
The Growth Fund may be appropriate if your goal is to grow your savings over the next several years by investing in U.S. companies that are expected to have above-average growth rates. You’re also comfortable with temporary — yet sometimes dramatic — fluctuations in your account balance based on the performance of the underlying stocks.
Investment Objective and Strategy
The fund seeks to provide long-term capital appreciation through investments in common stocks of growth companies. T. Rowe Price, the fund’s subadvisor, looks for companies expected to have an above-average rate of earnings and cash flow growth and a lucrative niche in the economy that gives them the ability to sustain earnings momentum even during times of slow economic growth. The fund normally invests at least 80% of net assets (including any borrowings for investment purposes) in the common stocks of large companies.
|Inception||January 22, 2001|
|Benchmark||Russell 1000 Growth Index|
Category: Large Growth
Overall, out of 1,231 funds, according to risk adjusted return
Classification: Large-Cap Growth Funds
Overall, out of 591 funds, according to historical total return
Overall, out of 590 funds, according to historical risk-adjusted returns adjusted for volatility
Overall, out of 12,300 funds, according to historical loss avoidance
Lipper ratings for Total Return reflect the fund’s historical total return performance relative to peers as of 3/31/20. Lipper ratings for Consistent Return reflect the fund’s historical risk-adjusted returns, adjusted for volatility, relative to peers as of 3/31/20. Lipper ratings for Preservation reflect Fund’s historical loss avoidance relative to other funds in the same asset class as of 3/31/20. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return and Preservation metrics over three-year, five-year, 10-year and Overall periods. The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Homestead Growth Fund, in Lipper’s Large-Cap Growth Funds classification, received a rating of 5 for the five-year, 10-year and Overall periods (number of funds rated in parentheses). Total Return: Five-year (531 funds), 10-year (416 funds) and Overall (591 funds). Consistent Return: Five-year (530 funds), 10-year (415 funds) and Overall (590 funds). Homestead Growth Fund, in Lipper’s Large-Cap Growth Funds classification, received a rating of 5 for the three-year, five-year and Overall periods (number of funds rated in parentheses). Preservation: Three-year (12,300 funds), Five-year (10,419 funds) and Overall (12,300 funds). Homestead Growth Fund, in Lipper’s Large-Cap Growth Funds classification, received a rating of 4 for the three-year period Total Return: (591 funds), three-year period Consistent Return: (590 funds) and 10-year period Preservation: (7,099 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at lipperleaders.com.
Morningstar rated this fund, in Morningstar’s large-growth category, 4 stars for the Overall period out of 1,231 funds, 4 stars for the 10-year period out of 812 funds, 4 stars for the five-year period out of 1,086 funds, and 4 stars for the three-year period out of 1,231 funds for performance periods ending 3/31/20. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-ended funds and separate accounts) 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-year, five-year, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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|Fee Structure||No Load|
|Expense Ratio||0.93% (Net 0.93%) (12/31/2019)|
|Median Expense Ratio for Peer Group||1.10% (12/31/2019)|
The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. Fund expense ratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosed in the prospectus. For some funds, the investment advisor has agreed voluntarily or contractually (for at least the current fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the expense ratio minus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.