what is investment horizion

An investment horizon refers to the length of time an investor expects to hold an investment or the duration over which they plan to achieve their financial goals through investing. It is a critical consideration when making investment decisions because it helps determine the appropriate investment strategy, asset allocation, and level of risk that an investor can tolerate. 1. **Short-term horizon**: Investors with a short-term horizon typically plan to hold their investments for a relatively brief period, often a year or less. 2. **Medium-term horizon**: Investors with an intermediate-term horizon usually plan to hold their investments for a few years but not necessarily for the long term. 3. **Long-term horizon**: Long-term investors have a horizon that extends many years into the future, often decades. Given your goal of making money without wanting volatile stocks but with moderate risk, a **medium-term investment horizon** might be suitable for you. This type of horizon allows for a balance between risk and potential return, as you can take advantage of market opportunities while still managing risk to some extent. For a **moderate risk tolerance**, you might consider a diversified portfolio that includes a mix of stocks and bonds. This can help smooth out potential volatility while still offering the possibility of capital appreciation. In any case, it's important to align your investment strategy with your personal financial goals and risk tolerance. If you need further guidance, consider consulting with a financial advisor who can help tailor an investment plan to your specific needs and objectives.