Time Horizon

Time horizon refers to the period over which an investor plans to hold an investment before needing to access the funds. It is one of the most important inputs in building a suitable investment strategy. Short horizons (under 3 years) typically call for capital-preservation instruments like liquid funds or short-duration debt. Medium horizons (3–7 years) may accommodate balanced or hybrid funds. Long horizons (7 years or more) allow for meaningful equity exposure, enabling the portfolio to benefit from the compounding of returns and the smoothing of market volatility over extended periods.