UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-06275

T. Rowe Price Balanced Fund, Inc.

 

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

 

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2023


Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

 


Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
December
31,
2023
Annual
Report
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
RPBAX
Balanced
Fund
.
RBAIX
Balanced
Fund–
.
I Class
T.
ROWE
PRICE
Balanced
Fund
HIGHLIGHTS
The
Balanced
Fund
outperformed
its
combined
index
portfolio
and
its
Lipper
peer
benchmark
for
the
12-month
period
ended
December
31,
2023.
Security
selection
drove
relative
outperformance,
while
exposure
to
diversifying
sectors
not
included
in
the
benchmark
and
tactical
decisions
to
overweight
or
underweight
various
asset
classes
detracted.
We
maintain
a
balanced
view
on
equities
supported
by
positive
earnings
trends
and
loosening
financial
conditions
against
a
backdrop
of
softening
growth
and
elevated
valuations.
Given
the
uncertain
impact
of
the
forces
driving
global
financial
markets,
we
believe
that
the
Balanced
Fund’s
broad
diversification
and
the
strength
of
T.
Rowe
Price’s
fundamental
research
platform
should
benefit
our
investors
over
time
across
a
range
of
market
and
economic
environments.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
Balanced
Fund
Market
Commentary
1
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
2023
as
most
economies
managed
to
avoid
the
recession
that
was
widely
predicted
at
the
start
of
the
year.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
rebounded
late
in
the
year
amid
falling
interest
rates.
For
the
12-month
period,
the
technology-oriented
Nasdaq
Composite
Index
rose
about
43%,
reaching
a
record
high
and
producing
the
strongest
result
of
the
major
benchmarks.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
which
finished
the
year
just
short
of
the
record
level
it
reached
in
early
2022,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
A
small
group
of
tech-oriented
mega-cap
companies
helped
drive
much
of
the
market’s
advance.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns
in
the
growth-focused
environment,
and
the
energy
sector
also
lost
ground
amid
declining
oil
prices.
The
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
and
was
one
of
the
top-performing
segments
in
the
second
half
of
the
year.
The
U.S.
economy
was
the
strongest
among
the
major
markets
during
the
period,
with
gross
domestic
product
growth
coming
in
at
4.9%
in
the
third
quarter,
the
highest
since
the
end
of
2021.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
and
second
quarters
of
2023,
but
results
were
better
than
expected,
and
earnings
growth
turned
positive
again
in
the
third
quarter.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation
remained
a
concern,
but
investors
were
encouraged
by
the
slowing
pace
of
price
increases
as
well
as
the
possibility
that
the
Federal
Reserve
was
nearing
the
end
of
its
rate-hiking
cycle.
The
Fed
held
rates
steady
after
raising
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
and
at
its
final
meeting
of
the
year
in
December,
the
central
bank
indicated
that
there
could
be
three
25-basis-point
rate
cuts
in
2024.
T.
ROWE
PRICE
Balanced
Fund
2
The
yield
of
the
benchmark
10-year
U.S.
Treasury
note
briefly
reached
5.00%
in
October
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
period-end,
the
same
level
where
it
started
the
year,
amid
cooler-than-expected
inflation
readings
and
less-hawkish
Fed
rhetoric.
Fixed
income
benchmarks
were
lifted
late
in
the
year
by
falling
yields.
Investment-grade
and
high
yield
corporate
bonds
produced
solid
returns,
supported
by
the
higher
coupons
that
have
become
available
over
the
past
year,
as
well
as
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely, 
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Balanced
Fund
Management’s
Discussion
of
Fund
Performance
3
INVESTMENT
OBJECTIVE 
The
fund
seeks
to
provide
capital
growth,
current
income,
and
preservation
of
capital
through
a
portfolio
of
stocks
and
fixed
income
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past
12
months?
The
Balanced
Fund
returned
17.99%
for
the
12
months
ended
December
31,
2023,
and
outperformed
its
combined
index
portfolio—a
custom-weighted
benchmark
composed
of
multiple
indexes
that
represent
the
asset
classes
in
which
the
fund
invests—the
Lipper
Mixed-Asset
Target
Allocation
Growth
Funds
Index,
and
the
Morningstar
Moderate
Target
Risk
Index.
(Returns
for
the
I
Class
varied
slightly,
reflecting
its
different
fee
structure.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Security
selection
drove
relative
outperformance
for
the
year.
Security
selection
within
the
U.S.
large-cap
growth
equity
allocation
delivered
strong
results,
contributing
to
relative
performance
as
our
holdings
in
companies
involved
with
the
development
of
artificial
intelligence
in
the
information
technology
(IT)
sector
were
beneficial.
Our
selection
of
IT
stocks
in
our
U.S.
large-cap
core
equity
allocation
also
lifted
performance.
Conversely,
selection
among
U.S.
large-cap
value
stocks
held
back
relative
performance.
In
an
environment
led
by
a
relatively
small
group
of
high-
growth,
technology-oriented
mega-cap
companies,
our
underweight
to
the
communication
services
and
IT
sectors
detracted.
Exposure
to
diversifying
sectors
not
included
in
the
fund’s
benchmark
weighed
on
relative
performance.
Out-of-benchmark
exposure
to
real
assets
equities
held
back
performance
as
global
equities
outperformed
real
assets
for
the
year.
While
real
assets
produced
positive
returns,
performance
was
hampered
by
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
12/31/23
6
Months
12
Months
Balanced
Fund
.
6.40‌%
17.99‌%
Balanced
Fund–
.
I  Class
6.47‌
18.10‌
Morningstar
Moderate
Target
Risk
Index
5.90‌
13.22‌
Combined
Index
Portfolio*
6.01‌
17.24‌
Lipper
Mixed-Asset
Target
Allocation
Growth
Funds
Index
6.52‌
16.54‌
*
For
a
definition
of
the
benchmark,
please
see
the
Benchmark
Information
section.
T.
ROWE
PRICE
Balanced
Fund
4
falling
energy
prices.
However,
exposure
to
high
yield
debt
moderated
this
impact.
High
yield
bonds,
which
are
less
sensitive
to
interest
rate
movements
and
more
sensitive
to
credit-related
trends,
strongly
outperformed
higher-
quality
bonds
for
the
period.
Tactical
decisions
to
overweight
and
underweight
asset
classes
weighed
on
relative
returns.
A
modest
underweight
to
equity
and
overweight
to
cash
for
part
of
the
period
had
a
negative
impact
as
equities
delivered
strong
double-
digit
performance.
Following
market
declines
in
the
late
summer
and
early
fall,
we
increased
our
equity
allocation
to
neutral
at
more
attractive
valuation
levels.
Conversely,
our
overweight
to
high
yield
bonds
was
beneficial.
How
is
the
fund
positioned?
Stocks
We
maintain
a
balanced
view
on
equities
supported
by
positive
earnings
trends
and
loosening
financial
conditions
against
a
backdrop
of
softening
growth
and
elevated
valuations.
We
remain
overweight
areas
of
the
market
with
supportive
valuations
that
could
benefit
from
lower
interest
rates
or
a
broader
easing
of
financial
conditions,
such
as
large-cap
core
equities.
Following
a
period
of
weakness,
we
added
to
our
position
in
real
assets
equities—shifting
to
an
overweight
in
June—as
a
potential
hedge
if
inflation
remains
elevated
or
inflects
higher.
SECURITY
DIVERSIFICATION
Balanced
Fund
T.
ROWE
PRICE
Balanced
Fund
5
Bonds
Within
fixed
income,
we
remain
modestly
overweight
cash
relative
to
bonds.
Cash
continues
to
provide
attractive
yields
and
liquidity
to
take
advantage
of
potential
market
dislocations.
We
added
to
U.S.
Treasury
inflation-protected
securities
on
more
attractive
valuations
and
as
a
hedge
against
a
reversal
in
recently
favorable
inflation
trends.
We
remain
overweight
to
high
yield
on
still
attractive
absolute
yield
levels
and
reasonably
supportive
fundamentals.
What
is
portfolio
management’s
outlook?
The
rally
in
global
markets
during
the
fourth
quarter
reversed
the
downward
trend
from
the
previous
quarter
and
ended
the
year
on
a
strong
note
for
both
equities
and
fixed
income.
Economic
data
during
the
year
suggested
that
tight
financial
conditions
have
had
the
intended
effect
of
reining
in
inflation,
as
consumer
spending
slowed,
labor
markets
softened,
and
manufacturing
data
trended
lower.
Against
this
backdrop,
we
have
seen
growing
optimism
for
an
engineered
soft
landing
for
the
U.S.
economy.
Indeed,
after
more
than
a
year
and
a
half
of
unprecedented
tightening
from
global
central
banks,
the
Fed
signaled
a
long-awaited
pivot
in
*
Sources:
Credit
ratings
for
the
securities
held
in
the
fund
are
provided
by
Moody’s,
Standard
&
Poor’s,
and
Fitch
and
are
converted
to
the
Standard
&
Poor’s
nomenclature.
If
the
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps
and
sovereign
securities.
The
fund
is
not
rated
by
any
agency.
**
U.S.
government
agency
securities
are
issued
or
guaranteed
by
a
U.S.
government
agency
and
may
include
conventional
pass-through
securities
and
collateralized
mortgage
obligations;
unlike
Treasuries,
government
agency
securities
are
not
issued
directly
by
the
U.S.
government
and
are
generally
unrated
but
may
have
credit
support
from
the
U.S.
Treasury
(e.g.,
FHLMC
and
FNMA
issues)
or
a
direct
government
guarantee
(e.g.,
GNMA
issues).
Therefore,
this
category
may
include
rated
and
unrated
securities.
***
U.S.
Treasury
securities
are
issued
by
the
U.S.
Treasury
and
are
backed
by
the
full
faith
and
credit
of
the
U.S.
government.
The
ratings
of
U.S.
Treasury
securities
are
derived
from
the
ratings
on
the
U.S.
government.
BOND
PORTFOLIO
PROFILE
Periods
Ended
6/30/23
12/31/23
Weighted
Average
Effective
Duration
(years)
6.0‌
5.8‌
Weighted
Average
Maturity
(years)
8.4‌
8.2‌
Credit
Quality
Diversification*
U.S.
Government
Agencies**
25.9‌%
26.2‌%
U.S.
Treasuries***
26.5‌ 
25.6‌ 
AAA
5.1‌ 
5.1‌ 
AA
5.3‌ 
5.6‌ 
A
11.7‌ 
12.2‌ 
BBB
12.3‌ 
12.3‌ 
BB
and
Below
12.9‌ 
12.7‌ 
Not
Rated
0.3‌ 
0.3‌ 
Total
100.0‌%
100.0‌%
T.
ROWE
PRICE
Balanced
Fund
6
monetary
policy
in
mid-December.
While
central
banks
in
Europe
and
other
major
developed
regions
did
not
immediately
follow
suit
with
the
Fed’s
dovish
rhetoric,
expectations
that
rates
could
fall
faster
and
sooner
than
previously
anticipated
mounted
as
2023
drew
to
a
close.
A
pivot
toward
looser
monetary
policy
could
certainly
represent
a
tailwind
for
growth,
but
risks
remain,
particularly
if
further
economic
data
suggesting
stickier
inflation
prompt
a
more
cautious
approach
that
disappoints
market
hopes.
Divergent
approaches
to
monetary
policy
present
an
additional
concern,
as
inflation
remains
elevated
in
Europe
giving
the
European
Central
Bank
cause
for
caution,
and
the
Bank
of
Japan,
meanwhile,
has
only
recently
begun
to
contemplate
incremental
tightening.
With
the
path
for
monetary
policy
and
economic
growth
still
uncertain,
we
expect
volatility
to
continue
as
markets
look
for
clarity
in
the
near-term
forecast.
Key
risks
to
global
markets
include
a
deeper-than-expected
decline
in
growth,
central
bank
missteps,
a
reacceleration
in
inflation,
the
trajectory
of
Chinese
growth,
and
geopolitical
tensions.
While
we
elected
to
add
to
risk
assets
during
the
recent
period,
we
continue
to
evaluate
long‐term
valuations
and
early
indications
of
stabilization
or
improvement
in
macroeconomic
conditions
as
we
assess
compelling
opportunities
and
potential
risks
in
the
year
ahead.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Balanced
Fund
7
RISKS
OF
INVESTING
As
with
all
stock
mutual
funds,
the
fund’s
share
price
can
fall
because
of
weakness
in
the
stock
market,
a
particular
industry,
or
specific
holdings.
Stock
markets
can
decline
for
many
reasons,
including
adverse
political
or
economic
developments,
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,
the
investment
manager’s
assessment
of
companies
held
in
a
fund
may
prove
incorrect,
resulting
in
losses
or
poor
performance
even
in
rising
markets.
Funds
that
invest
overseas
generally
carry
more
risk
than
funds
that
invest
strictly
in
U.S.
assets.
Risks
can
result
from
varying
stages
of
economic
and
political
development;
differing
regulatory
environments,
trading
days,
and
accounting
standards;
currency
fluctuations;
and
higher
transaction
costs
of
non-U.S.
markets.
Investments
outside
the
United
States
could
be
subject
to
governmental
actions
such
as
capital
or
currency
controls,
nationalization
of
a
company
or
industry,
expropriation
of
assets,
or
imposition
of
high
taxes.
Funds
that
invest
in
bonds
are
subject
to
interest
rate
risk,
the
decline
in
bond
prices
that
usually
accompanies
a
rise
in
interest
rates.
Longer-maturity
bonds
typically
decline
more
than
those
with
shorter
maturities.
Funds
that
invest
in
bonds
are
also
subject
to
credit
risk,
the
chance
that
any
fund
holding
could
have
its
credit
rating
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.
For
a
thorough
discussion
of
risks,
please
see
the
fund’s
prospectus.
BENCHMARK
INFORMATION
Combined
index
portfolio:
An
unmanaged
portfolio
of
45.5%
domestic
stocks
(S&P
500
Index),
19.5%
international
stocks
(MSCI
EAFE
Index
Net),
and 35.0%
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index).
Note:
©2024
Morningstar,
Inc.
All
rights
reserved.
The
information
contained
herein:
(1)
is
proprietary
to
Morningstar
and/or
its
content
providers;
(2)
may
not
be
copied
or
distributed;
and
(3)
is
not
warranted
to
be
accurate,
complete,
or
timely.
Neither
Morningstar
nor
its
content
providers
are
responsible
for
any
damages
or
losses
arising
from
any
use
of
this
information.
Past
performance
is
no
guarantee
of
future
results.
T.
ROWE
PRICE
Balanced
Fund
8
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
Note:
The
S&P
500
Index
is
a
product
of
S&P
Dow
Jones
Indices
LLC,
a
division
of
S&P
Global,
or
its
affiliates
(“SPDJI”)
and
has
been
licensed
for
use
by
T.
Rowe
Price.
Standard
&  Poor’s
®
and
S&P
®
 are
registered
trademarks of
Standard
&
Poor’s
Financial
Services
LLC,
a
division
of
S&P
Global (“S&P”);
Dow
Jones
®
is
a
registered
trademark
of
Dow
Jones
Trademark
Holdings
LLC
(“Dow
Jones”);
T.
Rowe
Price
is
not
sponsored,
endorsed,
sold
or
promoted
by
SPDJI,
Dow
Jones,
S&P,
or
their
respective
affiliates,
and
none
of
such
parties
make
any
representation
regarding
the
advisability
of
investing
in
such
product(s)
nor
do
they
have
any
liability
for
any
errors,
omissions,
or
interruptions
of
the
S&P
500
Index.
Note:
MSCI
and
its
affiliates
and
third-party
sources
and
providers
(collectively,
“MSCI”)
makes
no
express
or
implied
warranties
or
representations
and
shall
have
no
liability
whatsoever
with
respect
to
any
MSCI
data
contained
herein.
The
MSCI
data
may
not
be
further
redistributed
or
used
as
a
basis
for
other
indices
or
any
securities
or
financial
products.
This
report
is
not
approved,
reviewed,
or
produced
by
MSCI.
Historical
MSCI
data
and
analysis
should
not
be
taken
as
an
indication
or
guarantee
of
any
future
performance
analysis,
forecast
or
prediction.
None
of
the
MSCI
data
is
intended
to
constitute
investment
advice
or
a
recommendation
to
make
(or
refrain
from
making)
any
kind
of
investment
decision
and
may
not
be
relied
on
as
such.
Note:
Bloomberg
®
and Bloomberg
U.S.
Aggregate
Bond
Index
are
service
marks
of
Bloomberg
Finance
L.P.
and
its
affiliates,
including
Bloomberg
Index
Services
Limited
(“BISL”),
the
administrator
of
the
index
(collectively,
“Bloomberg”)
and
have
been
licensed
for
use
for
certain
purposes
by
T.
Rowe
Price.
Bloomberg
is
not
affiliated
with
T.
Rowe
Price,
and
Bloomberg
does
not
approve,
endorse,
review,
or
recommend
its
products.
Bloomberg
does
not
guarantee
the
timeliness,
accurateness,
or
completeness
of
any
data
or
information
relating
to
its
products.
BENCHMARK
INFORMATION
(continued)
T.
ROWE
PRICE
Balanced
Fund
9
T.
Rowe
Price
Real
Assets
Fund
I
Class
4.1‌%
Microsoft
3.1‌ 
Apple
2.4‌ 
Alphabet
1.8‌ 
Amazon.com
1.7‌ 
NVIDIA
1.4‌ 
Meta
Platforms
1.1‌ 
UnitedHealth
Group
0.7‌ 
Visa
0.7‌ 
Berkshire
Hathaway
CL
B
0.7‌ 
Total
17.7‌%
U.S.
Treasuries
8.8‌%
Federal
National
Mortgage
Association
Mortgages
5.7‌ 
T.
Rowe
Price
Institutional
High
Yield
Fund
4.6‌ 
Government
National
Mortgage
Association
2.0‌ 
Federal
Home
Loan
Mortgage
Corporation
Mortgages
0.9‌ 
Bank
of
America
0.2‌ 
Wells
Fargo
0.2‌ 
JPMorgan
Chase
0.2‌ 
Verus
Securitization
Trust
0.2‌ 
General
Motors
0.1‌ 
Total
22.9‌%
PORTFOLIO
HIGHLIGHTS
LARGEST
HOLDINGS
Stocks
Percent
of
Net
Assets
12/31/23
Bonds
Percent
of
Net
Assets
12/31/23
Note:
The
information
shown
does
not
reflect
any
exchange-traded
funds
(ETFs),
cash
reserves,
or
collateral
for
securities
lending
that
may
be
held
in
the
portfolio.
T.
ROWE
PRICE
Balanced
Fund
10
GROWTH
OF
$10,000 
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from
fund returns
as
well
as
mutual fund
averages
and
indexes.
BALANCED
FUND 
Note:
Performance
for
the I
Class share
will
vary
due
to
its differing
fee
structure.
See
the
Average
Annual
Compound
Total
Return
table
on
the
next
page. 
T.
ROWE
PRICE
Balanced
Fund
11
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
EXPENSE
RATIO
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
fund
has
two
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
and
the
I
Class
shares
are
also
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Periods
Ended
12/31/23
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Balanced
Fund
.
17.99‌%
8.89‌%
6.85‌%
–‌
Balanced
Fund–
.
I  Class
18.10‌
9.03‌
–‌
7.90‌%
12/17/15
The
fund’s
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Share
price,
principal
value,
and
return
will
vary,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1
-
800
-
225
-
5132
or,
for
0.02
I
Class
shares,
1-800-638-8790.
This
table
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
Balanced
Fund
0.65‌%
Balanced
Fund–I
Class
0.51‌ 
The
expense
ratio
shown
is
as
of
the
fund’s
most
recent
prospectus.
This
number
may
vary
from
the
expense
ratio
shown
elsewhere
in
this
report
because
it
is
based
on
a
different
time
period
and,
if
applicable,
includes
acquired
fund
fees
and
expenses
but
does
not
include
fee
or
expense
waivers.
T.
ROWE
PRICE
Balanced
Fund
12
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
expenses
based
on
the
fund’s
actual
returns.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is
based
on
hypothetical
account
values
and
expenses
derived
from
the
fund’s
actual
expense
ratio
and
an
assumed
5%
per
year
rate
of
return
before
expenses
(not
the
fund’s
actual
return).
You
may
compare
the
ongoing
costs
of
investing
in
the
fund
with
other
funds
by
contrasting
this
5%
hypothetical
example
and
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
Note:
T.
Rowe
Price
charges
an
annual
account
service
fee
of
$20,
generally
for
accounts
with
less
than
$10,000.
The
fee
is
waived
for
any
investor
whose
T.
Rowe
Price
mutual
fund
accounts
total
$50,000
or
more;
accounts
electing
to
receive
electronic
delivery
of
account
statements,
transaction
confirmations,
prospectuses,
and
shareholder
reports;
or
accounts
of
an
investor
who
is
a
T.
Rowe
Price
Personal
Services
or
Enhanced
Personal
Services
client
(enrollment
in
these
programs
generally
requires
T.
Rowe
Price
assets
of
at
least
$250,000).
This
fee
is
not
included
in
the
accompanying
table.
If
you
are
subject
to
the
fee,
keep
it
in
mind
when
you
are
estimating
the
ongoing
expenses
of
investing
in
the
fund
and
when
comparing
the
expenses
of
this
fund
with
other
funds.
You
should
also
be
aware
that
the
expenses
shown
in
the
table
highlight
only
your
ongoing
costs