It’s important to remember that all forms of investment come with a certain amount of risk.
In order to achieve any growth at all, we have to take on some risk – this is the risk that investments could fall. If we don’t assume an acceptable amount of investment risk and simply leave our cash under the mattress, the risk is that the value of our money (what you can actually buy with it) is eroded due to inflation (prices going up over time).*
In order to maintain the current value of your money, we need to grow it by at least the same rate as inflation (currently around 2%). The Dynamic fund aims to increase the value of your money by an additional 3% above inflation over rolling three year periods.
We therefore have to take on some risk (as all stocks and shares can go down as well as up) but we use our experience and expertise as investors to minimise this risk.
*there are of course many other risks if you were to leave your money under the mattress such as the risk of there being a fire or the risk of theft!