Let's try to understand the types of investment in terms of duration. All investments can be divided into short, medium and long term. Let's take a closer look at each of these types.
- Short-term investments are made for a period from 1 day to a couple of months. If we buy an asset for a changing market, then this is more related to speculation. But it is also possible to buy the same short-term bonds for a short period, so that the money does not lie idle. This also includes trading.
- Medium-term investments last from a couple of months to one year. This can be safely attributed to the purchase of shares, which we have selected for one or another input. If stocks show growth, often such investments simply go into the long-term section.
- The last investments on this list may not have a time horizon at all. That is, we buy some kind of asset, planning that we will be in it for at least a year, or better for longer, so that “compound interest” begins to work, which works magic with capital.
The choice of the type of investment depends on your goals and capabilities.