An Investment Horizon refers to the length of time that an investor is willing to hold the portfolio for. Investment horizon can be classified as following  Short term: These are investments with a short horizon of 3 months to 2 years. You plan to use the money for a particular thing soon, for example, creating a reserve fund for unexpected spending. Medium term: Investment with a medium-term horizon of 2-5 years. You know that you will need the money in a few years. It is also possible to choose products that correspond to this horizon Long term: Investments with longer-term horizons – 5 years or more. On retirement, for children to study and other longer-term goals.