What is 'Investment Horizon'
Investment horizon is the total length of time that an investor expects to hold a security or portfolio. The investment horizon is used to determine the investor's income needs and desired risk exposure, which is then used to aid in security selection.
BREAKING DOWN 'Investment Horizon'
As investment horizons increase in length, equities represent a higher riskadjusted return than fixedincome securities and cash. Across shorter investment horizons, equities become the riskier asset class because they carry higher levels of volatility.
For example, a young professional with a 401(k) plan should be mostly invested in equities because this person's time horizon could be 30 years or more. For someone nearing retirement, however, preservation of capital becomes much more important, so fixedincome investments become more attractive.
Some trading strategies, especially those based on technical analysis, can employ investment horizons of days, hours or even minutes.

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I have a 24 month time horizon. Where can I invest my money?
I am seeking moderate length investments for a down payment for a home. With global market uncertainty and the high volatility ... Read Answer >> 
How do I find out my own risk tolerance?
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What rate of return should I expect on my 401(k)?
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What are the main disadvantages of fixed income securities?
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Over what time period should I be looking at the forward rate?
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Which is more important  dividend yield or total return?
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