Time horizon refers to how long you plan to hold an investment before needing to withdraw the funds. It’s a foundational factor that influences your entire investment strategy - from asset selection to risk level and return expectations.
The longer your time horizon, the more risk you can typically afford to take. That’s because long-term investors have more time to recover from market downturns. In contrast, a short time horizon demands a more cautious approach since you may need access to your funds before markets rebound.
Prioritize capital preservation and liquidity. Best suited for cash savings, short-term bonds, or high-yield savings accounts.
Balance growth and safety. Portfolios often include stocks, bonds, and dividend-paying assets with moderate volatility.
Focus on growth. Time allows for more stock exposure, risk-taking, and compounding. Suited for retirement and wealth building.
More stock exposure, global diversification, and time to ride out bear markets. You can afford volatility now for long-term gains.
Capital preservation is key. Focus on stable, liquid assets. Avoid aggressive or speculative positions.
Blend of growth and income. Gradually transition to safer investments as the goal date approaches.
When you set your investment goal inside Investron, our AI tailors your portfolio strategy based on how soon you’ll need your funds. As your time horizon shortens, the platform suggests adjustments - helping you reduce risk and prepare for withdrawal.
Your time horizon isn’t fixed forever. Life events (job change, family plans, early retirement) may shift your timeline. Revisit your investment strategy at least once a year to make sure it still fits.