0000902259-01-500056.txt : 20011019
0000902259-01-500056.hdr.sgml : 20011019
ACCESSION NUMBER: 0000902259-01-500056
CONFORMED SUBMISSION TYPE: 497K3B
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20011015
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: PRICE T ROWE BLUE CHIP GROWTH FUND INC
CENTRAL INDEX KEY: 0000902259
STANDARD INDUSTRIAL CLASSIFICATION: []
STATE OF INCORPORATION: MD
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 497K3B
SEC ACT: 1933 Act
SEC FILE NUMBER: 033-49581
FILM NUMBER: 1758706
BUSINESS ADDRESS:
STREET 1: C/O T ROWE PRICE ASSOCIATES INC
STREET 2: 100 EAST E PRATT ST
CITY: BALTIMORE
STATE: MD
ZIP: 21202
BUSINESS PHONE: 4105472000
497K3B
1
bcg-fundprofile.txt
BLUE CHIP GROWTH FUND, OCTOBER 1, 2001
October 1, 2001
FUND PROFILE
T. ROWE PRICE
Blue ChipGrowth Fund
A stock fund seeking long-term capital growth through high-quality U.S. growth
companies.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
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1
FUND PROFILE
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What is the fund's objective?
The fund seeks to provide long-term capital growth. Income is a secondary
objective.
What is the fund's principal investment strategy?
We will invest 65% of total assets in the common stocks of large and
medium-sized blue chip growth companies. These are firms that, in our view,
are well-established in their industries and have the potential for
above-average earnings. We focus on companies with leading market position,
seasoned management, and strong financial fundamentals. Our investment
approach reflects our 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 companies we target will have good
prospects for dividend growth.
While most assets will be invested in U.S. common stocks, other securities
may also be purchased, including foreign stocks, futures, and options, in
keeping with fund objectives.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
Even well-established growth stocks can be volatile. Since growth companies
usually invest a high portion of earnings in their own businesses, their
stocks may lack the dividends that can cushion share prices in a down market.
Since many investors buy these stocks because of anticipated superior
earnings growth, earnings disappointments often result in sharp price
declines. Also, medium-sized companies may have greater volatility than
larger ones.
As with all equity funds, this fund's share price can fall because of
weakness in the broad market, a particular industry, or specific holdings.
The market as a whole can decline for many reasons, including adverse
political or economic developments here or abroad, changes in investor
psychology, or heavy institutional selling. The prospects for an industry or
company may deteriorate because of a variety of factors, including
disappointing earnings or changes in the competitive environment. In
addition, our assessment of companies held in the fund may prove incorrect,
resulting in losses or poor performance even in a rising market. Finally, the
fund's investment approach could fall out of favor with the investing public,
resulting in lagging performance versus other types of stock funds.
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FUND PROFILE
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Foreign stock holdings are subject to the risk that some holdings may lose
value because of declining foreign currencies or adverse political or
economic events overseas. Investments in futures and options, if any, are
subject to additional volatility and potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
. The fund's share price may decline, so when you sell your shares, you may
lose money. An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for risk. If you are willing to accept the risk of investing
in established growth stocks in an effort to achieve long-term capital
growth, the fund could be appropriate for you. This fund should not represent
your complete investment program or be used for short-term trading purposes.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. Equity investors should have a long-term investment horizon and be willing
to wait out bear markets.
How has the fund performed in the past?
The bar chart showing calendar year returns and the average annual total
return table indicate risk by illustrating how much returns can differ from
one year to the next and over time. Fund past performance is no guarantee of
future returns.
The fund can also experience short-term performance swings, as shown by the
best and worst calendar quarter returns during the years depicted in the
chart.
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FUND PROFILE
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LOGO
Calendar Year Total Returns
"94" "95" "96" "97" "98" "99" "00"
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0.80 37.90 27.75 27.56 28.84 20.00 -2.53
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Quarter ended Total return
Best quarter 12/31/98 24.71%
Worst quarter 9/30/98 -12.05%
Table 1 Average Annual Total Returns
Periods ended 09/30/2001
Since inception
1 year 5 years (06/30/1993)
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Blue Chip Growth Fund -31.98% 9.20% 13.96%
S&P 500 Stock Index -26.62 10.22 12.8
Lipper Large-Cap Growth -43.77 6.01 9.54
Funds Average
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These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
What fees or expenses will I pay?
The fund is 100% no load. There are no fees or charges to buy or sell fund
shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
are no 12b-1 fees.
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FUND PROFILE
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Table 2 Fees and Expenses of the Fund*
Annual fund operating expenses
(expenses that are deducted from fund assets)
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Management fee 0.62%/ // /
Other expenses 0.29%
Total annual fund operating expenses 0.91%/ // /
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* Redemption proceeds of less than $5,000 sent by wire are subject to a $5 fee
paid to the fund. Accounts with less than a $2,000 balance (with certain
exceptions) are subject to a $10 fee.
Example. The following table gives you a rough idea of how expense ratios may
translate into dollars and helps you to compare the cost of investing in this
fund with that of other mutual funds. Although your actual costs may be
higher or lower, the table shows how much you would pay if operating expenses
remain the same, you invest $10,000, earn a 5% annual return, and hold the
investment for the following periods and then redeem:
1 year 3 years 5 years 10 years
----------------------------------------------------
$93 $290 $504 $1,120
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Who manages the fund?
The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
Rowe Price and its affiliates manage investments for individual and
institutional accounts. The company offers a comprehensive array of stock,
bond, and money market funds directly to the investing public.
Larry J. Puglia manages the fund day to day and has been chairman of its
Investment Advisory Committee since 1996. He joined T. Rowe Price in 1990 and
has been a portfolio manager since 1993.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
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FUND PROFILE
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How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee.
When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F93-035
T. Rowe Price Investment Services, Inc., Distributor