Which Mutual fund would you choose?

I have watching these two mutual funds and am ready to dive into the market. The media is twice the price of the other, and has a better return so far this year. Does anyone have any recommendations for either stock? When should I buy?

T. Rowe Price Media & Telecom (PRMTX)
T. Rowe Price Global Stock (PRGSX)

Hey Top,

Although the PRMTX is doing better this year, it is what is known as a "sector fund". It only invests in companies in the media and telecom industries. PRGSX is a "global stock" fund that invests in U.S. of all sectors AND companies outside of the U.S. It is therefore much more diversified. In the long term, PRGSX is probably going to be a better "safer" bet, unless you are a very aggressive, short-term investor and think PRMTX is going to go up even more.

If it were me, I'd pick PRMTX between the two. Of course, there are a gazillon other mutual funds out there... you might want to check them out too.

Good luck.

You can not value two securities simply based on their price, you need to look at their valuation metrics and compare them to other relavent securities. In other words you could not compare the valuation metrics of these two funds against each other. What you can look at is the sharpe ratio, over the past 3 yr and 5 yr periods. The sharpe ratio is a number that takes into consideration return and stdev, simply put the higher the sharpe ratio the better. In order to give advice on which fund to buy i would need to know what other funds you own or plan on owning ( for diversification purposes). If forced, i would say the Global stock, but understand that global funds have increased risks over domestic funds. Good luck.

It just so happens that I've owned PRMTX for several years. It was disappointing for much of that time, but it's done quite well for the past couple of years.

I'm not sure that picking only one, of only these two, is the right question at all. But that's the question you asked.

I would go with the global stock fund. As a previous answer said, the price of one share does NOT indicate relative value.

When should you buy? Tomorrow would be OK.

TRP is a good company to do business with. Their magazine is good, their website is good, and their employees are helpful.

The global fund will give you way more diversification than a single sector fund. If you are fairly new to investing, Global Stock would be a better choice between the two.