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July 1, 2000
FUND PROFILE
T. ROWE PRICE
New Era Fund
A stock fund seeking capital appreciation through companies that own or develop
natural resources and other basic commodities.
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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FUND PROFILE
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What is the fund's objective?
The fund seeks to provide long-term capital growth primarily through the
common stocks of companies that own or develop natural resources and other
basic commodities, and also through the stocks of selected nonresource growth
companies.
What is the fund's principal investment strategy?
We normally invest about two-thirds of fund assets in the common stocks of
natural resource companies whose earnings and tangible assets could benefit
from accelerating inflation. We also invest in other growth companies with
strong potential for earnings growth that do not own or develop natural
resources. The relative percentages invested in resource and nonresource
companies can vary depending on economic and monetary conditions and our
outlook for inflation. The natural resource companies held by the fund
typically own, develop, refine, service, or transport resources, including
energy, metals, forest products, real estate, and other basic commodities. In
selecting natural resource stocks, we look for companies whose products can
be produced and marketed profitably when both labor costs and prices are
rising. In the mining area, for example, we might look for a company with the
ability to expand production and maintain superior exploration programs and
production facilities.
At least half of fund assets will be invested in U.S. securities, but up to
50% of total assets may be invested in foreign securities. We may also buy
other types of securities, including futures and options, in keeping with the
fund's objective.
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 either of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
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 per-
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formance 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.
The fund is less diversified than most stock funds and could therefore
experience sharp price declines when conditions are unfavorable to its
sector. For instance, since the fund attempts to invest in companies that may
benefit from accelerating inflation low inflation could lessen returns. The
rate of earnings growth of natural resource companies may be irregular since
these companies are strongly affected by natural forces, global economic
cycles, and international politics. For example, stock prices of energy
companies can fall sharply when oil prices fall. Real estate companies are
influenced by interest rates and other factors.
The fund's investments in foreign securities, or even in U.S. companies with
significant overseas investments, are also subject to the risk that some
holdings may lose value because of declining foreign currencies or adverse
political or economic events overseas. While currency risk may be somewhat
reduced because many commodities markets are dollar based, the fund's
exposure to foreign political and economic risk will be heightened by
investments in companies with operations in emerging markets.
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.
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 risks of investing
in U.S. and foreign companies whose earnings are especially influenced by
worldwide economic and monetary conditions in pursuit of 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.
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FUND PROFILE
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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.
LOGO
<TABLE>
<CAPTION>
Calendar Year Total Returns
"89" "90" "91" "92" "93" "94" "95" "96" "97" "98" "99"
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <S>
24.29 -8.76 14.74 2.08 15.33 5.17 20.76 24.25 10.96 -9.88 21.22
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</TABLE>
Quarter ended Total return
Best quarter 6/30/99 11.34%
Worst quarter 9/30/98 -12.41%
<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 06/30/2000
1 year 5 years 10 years
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<S> <C> <C> <C>
New Era Fund 6.16% 11.36% 9.78%
S&P 500 Stock Index 7.24 23.80 17.80
Lipper Natural Resources Funds 15.27 9.37 7.94
Average
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</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
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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.
<TABLE>
Table 2 Fees and Expenses of the Fund
<CAPTION>
Annual fund operating expenses
(expenses that are deducted from fund assets)
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<S> <C>
Management fee 0.57%/ // /
Other expenses 0.17%
Total annual fund operating 0.74%/ // /
expenses
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</TABLE>
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 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:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
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<S> <C> <C> <C>
$76 $237 $411 $918
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</TABLE>
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.
Charles M. Ober manages the fund day-to-day and has been chairman of its
Investment Advisory Committee since 1997. He joined T. Rowe Price in 1980 and
has been managing investments since 1987.
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
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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.
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. A $5 fee is charged for wire redemptions under $5,000.
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.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F41-035
T. Rowe Price Investment Services, Inc., Distributor
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