Long-term investments are assets that an individual or agency intends to maintain for a length of greater than three years.
Instruments facilitating long-term investments consist of stocks, actual estate, cash, etc. Long-term investors take on a giant degree of danger in pursuit of higher returns.
All investments elevate some degree of risk. Stocks, bonds, mutual money and exchange-traded dollars can lose value—even their whole value—if market prerequisites sour. Even conservative, insured investments, such as certificates of credit score (CDs) issued by way of a financial institution or savings union, come with inflation risk.
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