What is short term long term & Medium term in investment ?
What is short term long term & Medium term in investment? Investment Horizons: Short-Term: Duration: Less than 1 year (often 3 to 12 months). Purpose: Quick returns, capital preservation, or meeting near-term financial goals. Instruments: Savings accounts, liquid funds, short-term bonds, ultra-short-term mutual funds, or blue-chip stocks with low volatility. Risk & Returns: Typically lower returns and lower risk, though short-term equity trades can be volatile. Medium-Term: Duration: 1 to 5 years (sometimes 3 to 7 years, depending on context). Purpose: Building wealth for medium-term goals like buying a car, funding a child’s education, or accumulating capital for larger investments. Instruments: Balanced mutual funds, blue-chip stocks, medium-term debt funds, REITs, or conservative equity portfolios. Risk & Returns: Moderate risk and moderate returns, aiming ...