Investment Horizon

Investment Horizon refers to the total length of time an investor plans to hold an investment before needing to access the funds. It is one of the most critical determinants of an appropriate investment strategy. Short-term horizons (under 3 years) typically favour capital preservation instruments like liquid funds and short-duration bonds. Medium-term horizons (3–7 years) may suit balanced or hybrid funds. Long-term horizons (7+ years) allow for higher equity exposure, benefiting from the power of compounding and the smoothing of short-term market volatility.