Difference Between Long-term Investments and Short-term Investments

There are different types of mutual fund investments available today. There are short-term investments and long-term investments. There are, in fact, as many investment strategies as there are investors. Having to choose between this wide range of options can sometimes be daunting. Choosing between long-term investments and short-term investments is basically like choosing between how fast you want your investment to grow and how much risk you are willing to take.

Long-term investments are those investments which you plan to hold for more than one year.