Investment Horizon
Investment horizon is the time available to fund a financial goal, shaping liquidity needs, loss capacity, and the treatment of future withdrawals.
Portfolio-governance concepts connecting financial objectives, investment horizons, constraints, decision authority, and monitoring.
Portfolio policy begins with purpose. An Investment Objective translates a financial goal into a measurable outcome, while the Investment Horizon identifies the time available to meet the goal, including any interim withdrawals. A reporting interval is not necessarily the investment horizon.
An Investment Policy Statement records those objectives alongside risk, liquidity, tax, legal, and unique constraints. It also assigns authority for allocation, manager selection, rebalancing, exceptions, reporting, and policy review.
These concepts should remain distinct. An objective is not a strategy, a long horizon does not guarantee loss recovery, and a generic policy template does not establish suitability or legal authority for a specific account.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Investment horizon is the time available to fund a financial goal, shaping liquidity needs, loss capacity, and the treatment of future withdrawals.
An investment objective states the measurable financial outcome a portfolio is intended to pursue within a defined horizon, risk level, and set of constraints.
An investment policy statement documents a portfolio's purpose, objectives, constraints, decision authority, allocation rules, and review process.