<PAGE>
October 1, 2000
FUND PROFILE
T. ROWE PRICE
Personal Strategy Growth Fund
A fund seeking capital growth and income by investing in a mix of stocks,
bonds, and money market securities.
TROWEPRICELOGO
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.
<PAGE>
1
1
FUND PROFILE
---------------------------------------------------------
What is the fund's objective?
The fund seeks the highest total return over time, consistent with a primary
emphasis on capital growth and a secondary emphasis on income.
What is the fund's principal investment strategy?
The fund typically invests in a diversified portfolio consisting of about 80%
stocks and 20% bonds and money market securities. Under normal conditions,
allocations for the fund can vary by 10 percentage points above or below
these ranges, based on our outlook for the economy and the financial markets.
When deciding upon allocations within these prescribed ranges, the manager
may favor fixed-income securities if the economy is expected to slow
sufficiently to hurt corporate profit growth. The opposite may be true when
strong economic growth is expected. When selecting particular stocks to
purchase, the manager will examine relative values and prospects among
growth- and value-oriented stocks, domestic and international stocks, and
small- to large-cap stocks. Domestic stocks are drawn from the overall U.S.
market while international equities are selected primarily from large
companies in developed countries. This process draws heavily upon T. Rowe
Price's proprietary stock research expertise. While the fund maintains a
well-diversified portfolio, the manager may at a particular time shade stock
selection toward markets or market sectors that appear to offer attractive
value and appreciation potential.
Much the same security selection process applies to bonds. For example, when
deciding on whether to adjust allocations to high-yield (junk) bonds, the
manager will weigh such factors as the outlook for the economy and corporate
earnings and the yield advantage lower-rated bonds offer over
investment-grade bonds. Bonds are primarily investment grade (top four credit
ratings) and are chosen from across the entire government, corporate, and
mortgage-backed bond market. Maturities will reflect the manager's outlook
for interest rates.
We may also invest in other securities, including futures and options, in
keeping with the fund's objective.
Securities may be sold for a variety of reasons, such as to effect a change
in asset allocation, secure a gain, limit a loss, 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.
<PAGE>
2
FUND PROFILE
---------------------------------------------------------
What are the main risks of investing in the fund?
The fund's program of investing in stocks, bonds, and money market securities
exposes it to a variety of risks. Each of these is proportional to the
percentage of assets the fund has in these securities. Stock market
volatility is the main source of risk for the fund.The risks include:
. Risks of stock investing Stock prices 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 funds.
. Risks of bond investing Bonds have two main sources of risk. Interest rate
risk is the decline in bond prices that usually accompanies a rise in
interest rates. Longer-maturity bonds typically suffer greater declines than
those with shorter maturities. Mortgage securities can react somewhat
differently than regular bonds to interest rate changes. Falling rates can
cause losses of principal due to increased mortgage prepayments. Rising rates
can lead to decreased prepayments and greater volatility. Credit risk is the
chance that any fund holding could have its credit downgraded, or that a bond
issuer will default (fail to make timely payments of interest or principal),
potentially reducing the fund's income level and share price.
While the fund expects to invest primarily in investment-grade bonds, it may
also hold high-yield (junk) bonds, including those with the lowest rating.
Investment-grade bonds are those rated from the highest (AAA) to medium (BBB)
quality, and high-yield bonds are rated BB and lower. The latter are
speculative since their issuers are more vulnerable to financial setbacks and
recession than more creditworthy companies, but BBB-rated bonds may have
speculative elements as well. High-yield bond issuers include small companies
lacking the history or capital to merit investment-grade status, former blue
chip companies downgraded because of financial problems, and firms with heavy
debt loads.
. Risks of foreign securities To the extent the fund invests in foreign
stocks and bonds, it is also subject to the special risks associated with
such investments whether denominated in U.S. dollars or foreign currencies.
These risks include potentially adverse political and economic developments
overseas, greater volatility, less liquidity, and the possibility that
foreign currencies will
<PAGE>
3
3
FUND PROFILE
---------------------------------------------------------
decline against the dollar, lowering the value of securities denominated in
those currencies.
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. The fund is designed for more aggressive investors
who want significant exposure to stocks and can withstand inevitable setbacks
in an effort to achieve potential long-term growth.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. The fund should not represent your complete investment program or be used
for short-term trading purposes.
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.
<PAGE>
4
FUND PROFILE
---------------------------------------------------------
LOGO
<TABLE>
<CAPTION>
Calendar Year Total Returns
"95" "96" "97" "98" "99"
------------------------------------------------------
<S> <C> <C> <C> <C> <C> <S>
31.43 17.68 20.56 15.65 11.21
------------------------------------------------------
</TABLE>
Quarter ended Total return
Best quarter 12/31/98 14.13%
Worst quarter 9/30/98 -9.02%
<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 09/30/2000
Since inception
1 year 5 years (07/29/1994)
------------------------------------------------------------------------------
<S> <C> <C> <C> <S>
Personal Strategy Growth Fund 12.07% 15.05% 16.30%
Merrill Lynch-Wilshire Capital
Markets Index 14.30 15.31 16.09
Combined Index Portfolio (80%
Stocks, and 20% Corporate and 12.21 18.70 19.57
Government Bonds)
------------------------------------------------------------------------------
</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
/ a/The securities indexes used as comparisons for the stock, bond, and money
market portions of the fund are the S&P 500, the Lehman Brothers Aggregate
Bond Index, and 90-day Treasury bills, respectively.
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. Redemption proceeds of less than $5,000 sent by wire are
subject to a $5 fee paid to the fund.
<PAGE>
5
5
FUND PROFILE
---------------------------------------------------------
<TABLE>
Table 2 Fees and Expenses of the Fund
<CAPTION>
Annual fund operating expenses
(expenses that are deducted from fund assets)
------------------------------------------------------------------------------
<S> <C> <S>
Management fee 0.62%/a/
Other expenses 0.48%
Total annual fund
operating expenses 1.10%/a/
Fee
waiver/reimbursement --%
Net expenses 1.10%
------------------------------------------------------------------------------
</TABLE>
/a/
Effective June 1, 2000, T. Rowe Price contractually obligated itself to waive
any fees and bear any expenses through May 31, 2002, to the extent such fees
or expenses would cause the fund's ratio of expenses to average net assets to
exceed 1.10%. Fees waived or expenses paid or assumed under this agreement
are subject to reimbursement to T. Rowe Price whenever the fund's expense
ratio is below 1.10%; however, no reimbursement will be made after May 31,
2004, or if it would result in the expense ratio exceeding 1.10%. The fund
operated under a previous expense limitation for which T. Rowe Price may be
reimbursed.
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, the expense limitation currently in place is not renewed,
you invest $10,000, earn a 5% annual return, and hold the investment for the
following periods and then redeem:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
----------------------------------------------------
<S> <C> <C> <C>
$112 $350 $606 $1,340
----------------------------------------------------
</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.
Edmund M. Notzon manages the fund day-to-day and has been chairman of its
Investment Advisory Committee since 1998. He has been managing investments
since joining T. Rowe Price in 1989.
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.
<PAGE>
6
FUND PROFILE
---------------------------------------------------------
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. The minimum subsequent
investment is $100. 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.
When will I receive income and capital gain distributions?
The fund distributes income annually 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.
<PAGE>
FUND PROFILE
---------------------------------------------------------
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F103-035
T. Rowe Price Investment Services, Inc., Distributor
<PAGE>
