The Davenport Funds Q3 2025 Stock Market Update

Core Insights - The document primarily discusses the risks associated with mutual fund investing, emphasizing the potential for principal loss and the volatility of stock markets [3][5][6]. Group 1: Investment Risks - Mutual fund investing involves risks, including the possibility of losing principal [3][5]. - Stock markets and individual stock investments are noted for their volatility, which can lead to significant declines due to various risks [5][6][11]. - Small and mid-cap company stocks are highlighted as being more volatile compared to larger, established companies [7][8][11]. Group 2: Fund Performance and Management - The performance of mutual funds is subject to market conditions and management risks, with no guarantee of achieving investment objectives [5][6][10]. - Historical performance is presented as not indicative of future results, emphasizing the inherent risks in securities investing [11]. - The document mentions that the expense ratio of funds may fluctuate based on changes in net assets [4]. Group 3: Index Definitions - Various indices are defined, including the S&P 500 Total Return Index for U.S. large caps and the Russell 2000 Index for small caps, which represent significant portions of the market capitalization [12][13]. - The MSCI EAFE Index and MSCI EM Index are referenced for international developed and emerging markets, respectively [12][13].