What is a short-term investment strategy?

A short-term investment strategy typically concludes within five years and applies to investors with short-term financial goals, which may vary from saving for an overseas holiday to buying a car or paying for college. The timeframe also decides the assets to which money is allocated. A short-term investment portfolio typically includes cash, short-term bonds and equities – assets that can quickly be converted into cash. Short-term strategies also tend to focus on less risky investments.