What types of risks are associated with investing in Dodge & Cox Funds?

Investing in Dodge & Cox Funds, like any investment, comes with various types of risks that investors should be aware of. One primary risk is market risk, which refers to the possibility that the value of the fund’s investments may decline due to changes in market conditions or economic factors. This could be influenced by factors such as interest rate fluctuations, inflation, or broader economic trends. Another risk is credit risk, particularly relevant for bond funds. This risk involves the potential that a bond issuer may fail to make interest payments or repay principal. Dodge & Cox Funds may invest in corporate bonds, municipal bonds, or other fixed-income securities, and thus, fluctuations in issuer creditworthiness can affect fund performance. Additionally, there is liquidity risk, which arises when an investor may not be able to sell their investment quickly enough without impacting the price. This risk can be particularly pronounced in bond markets or in less liquid securities. Investors should also consider management risk, which pertains to the potential shortcomings in investment decisions made by the fund's management team. Overall, it is important for investors to thoroughly research these risks and stay informed about how they may impact their investment in Dodge & Cox Funds. For further insights or specific inquiries, it may be helpful to look at the current web page for more comprehensive information.