Dodge & Cox IncomeDODIX

Dodge & Cox Income takes risks that pay.

Investors are falling back in love with this fund. When risk aversion ruled in the financial crisis, this fund saw $2.1 billion in net outflows from 2008's second quarter through 2009's first. Since then, however, the fund has been one of the best sellers in its category, gathering nearly $2.  Read more 

Management strives to better its bogy, the Barclays Capital Aggregate Bond Index, mainly through security selection. The fund is typically heavy in corporate bonds, especially midgrade issues. Management targets corporate bonds and mortgage-backed securities with call-protection features so that it can hold on to its bonds for the long haul.  Read more 

An experienced, nine-member investment policy committee is responsible for the fund and all of the firm's institutional fixed-income accounts. The fund also draws on 14 fixed-income analysts, managers, and traders, as well as the firm's roughly two-dozen industry analysts who do credit analysis on individual companies along with traditional equity analysis.  Read more 

Management has produced topnotch results over both the short and long term by focusing on security selection. The fund tends to favor investment-grade corporate bonds and mortgage-related securities with limited prepayment risk.  Read more