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Definition of 'Investment Horizon'
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.
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Investopedia explains 'Investment Horizon'
As investment horizons increase in length, equities represent a higher risk-adjusted return than fixed-income 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 fixed-income 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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Search results for 'Investment Horizon'
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http://www.investopedia.com/articles/stocks/09/quantum-potential-losses.asp
... losses and what you can afford, rather than the notion that you can simply "wait
until they go up." Nonetheless, the shorter your investment horizon, the less ...
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http://www.investopedia.com/articles/mutualfund/07/etf-portfolio.asp
... falls. Investment Horizon An individual's investment horizon generally depends
on the number of years until that person's retirement. ...
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http://www.investopedia.com/articles/07/ma-competition.asp
... partner. The investment horizon can be as short as two or three years, or
the group may own the company for 20 years or more. There ...
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http://www.investopedia.com/articles/financial-theory/08/scenario-analysis.asp
... Although both investments may provide the same overall return for a given investment
horizon, the periodic returns demonstrate the risk differentials in these ...
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http://www.investopedia.com/articles/07/consumerpriceindex.asp
... method should be used because the approximate method will introduce additional
inaccuracy, which will be compounded as the investment horizon increases. ...
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http://www.investopedia.com/articles/financial-careers/09/private-equity.asp
... equity firm acquires a company, they work together with management in order to
significantly increase EBITDA during its investment horizon (typically between ...
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http://www.investopedia.com/professionals/questionoftheweek/cfa/032806.asp
... The longer the investment horizon, the more emphasis must be placed on any current
expectations with regards to the relative performance of the various asset ...
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http://www.investopedia.com/articles/stocks/08/market-downturn.asp
... As a general rule, investors should not get involved in equities unless they have
an investment horizon of at least five years, but preferably more. ...
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http://www.investopedia.com/articles/stocks/09/activist-investors.asp
... Activists May Have a Different Investment Horizon Activists can be a very fickle
bunch. In some cases they may latch onto a position and hold it for years. ...
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http://stocks.investopedia.com/stock-analysis/2009/A-Long-Term-Play-On-The-Horizon-HRZ-COST-LOW-WMT-TM1001.aspx
... In order to appreciate the potential of this investment idea, you are going to have
a long-term investment horizon and faith that the economy will get better. ...
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