As of 2015, risks associated with the Dodge & Cox stock fund include the fund underperforming other investments, investors losing money by investing in the fund, and fund managers making untimely sales or purchases of fund securities, states Dodge & Cox. Fluctuating market prices also create risk.
Other risks include fund managers offering incorrect opinions about the basic worth of a company or security or the market continually undervaluing the company or security, notes Dodge & Cox. The company may not hedge or may not hedge successfully if the fund has currency exposure when the value of foreign currencies decline compared to the U.S. dollar. Fund investments are not bank deposits, and the Federal Deposit Insurance Corporation does not guarantee or insure them.