T. Rowe Price Equity Income (PRFDX)
I have put a significant amount of money for me into PRFDX thinking it would be safe from market
swings but it goes with the market too. Remind me why you think this mutual fund is safer than the
rest of the market?
Terry Says
Well, and I always fully disclose, this is my long-time favorite mutual fund, and I have said as much. I think my first investment in it was in the early 1980s! And I’ve never taken any money out.
It is a CONSERVATIVE fund, but it does invest in the stock market. So in years when the entire market is down, of course it will drop in share value. Just with less volatility and amplitude, because of the dividend component.
And you should know that, because of course you read not the whole prospectus, but at least the description of their investment philosophy before you purchased it!
