Investing short, medium or long term: how to choose your best strategy
Last Updated on 19 February 2026 by Equipo Urbanitae
Every investment strategy must start with a fundamental question: What do you need the money for, and when will you need it? The answer will determine not only the type of asset you choose, but also the time horizon that best fits your profile. Investing in the short, medium, or long term is not simply a matter of time, but of balancing return, liquidity, and risk.
In this article, we look at the key aspects of each investment horizon, their advantages and disadvantages, and how to choose the most suitable one depending on your goals. The idea is that each investor selects the type of investment that best fits their personal situation and risk appetite.
What’s the difference between short, medium, and long term?
Short-term investment usually refers to opportunities with a horizon of less than 12 months. The goal here is often to preserve liquidity or take advantage of a one-off opportunity, with relatively quick capital recovery. Risks tend to be lower if the assets are stable, although returns may also be limited.
Medium-term investment covers periods between 1 and 3 years. This horizon allows for slightly higher risk and access to opportunities with greater potential returns, without tying up capital for too long. It’s a common strategy for those looking to grow their wealth without losing flexibility.
Long-term investment, on the other hand, extends beyond 3 years. Here, the investor prioritizes sustained value creation, assuming they won’t need the capital in the short term. In return, they can access more profitable assets or projects that take longer to mature, such as full-scale real estate developments or income-generating strategies.
Comparative table: short term vs medium term vs long term
| Criterion | Short term | Medium term | Long term |
|---|---|---|---|
| Time horizon | Less than 12 months | 1 to 3 years | More than 3 years |
| Goal | Liquidity and stability | Grow with flexibility | Build wealth and generate income |
| Liquidity | High | Medium | Low |
| Risk | Low to medium | Medium | Medium to high |
| Returns | Moderate | Medium | Medium to high |
| Examples | Treasury bills, time deposits, short-term debt | Bonds, balanced funds, 12–24 month debt | Real estate equity, rental income, property developments |
| When to choose | If you may need the money soon | If you want growth without locking money up too much | If long-term goals are your priority |
Which option is right for you?
There is no one-size-fits-all answer. The best choice depends on your risk profile, your financial goals, and your time horizon. If you are seeking security and need access to your money in the near term, short-term investments with moderate returns and lower exposure may be more suitable. If you are in a wealth-building phase, you might consider medium-term opportunities with higher return potential. And if your priority is to build wealth that generates sustainable income or appreciates over time, a long-term horizon may deliver better risk-adjusted outcomes.
In addition, a diversified strategy across time horizons can help balance stability, growth, and capital availability. For example, you could keep part of your investment in short-term projects to ensure liquidity, another part in medium-term operations with good return potential, and a third in long-term investments geared toward recurring income.
In all cases, it’s important to consider your current financial situation, your future liquidity needs, and your tolerance for risk. Urbanitae provides clear and detailed information on each project to help you make informed decisions and adjust your portfolio accordingly.
Examples of portfolios by investor profile
| Profile | Short term | Medium term | Long term | Main objective | What to include |
|---|---|---|---|---|---|
| Conservative | 60–70% | 20–30% | 10% | Liquidity and stability | Secured debt with low LTV, Treasury bills, time deposits |
| Balanced | 30–40% | 40–50% | 20–30% | Grow with flexibility | 12–24 month debt with a clearly defined exit plan, bridge projects |
| Dynamic | 15–20% | 35–45% | 35–45% | Compounding and value creation | Debt with higher expected IRR and clear milestones, equity in development projects and long-term rentals |
These examples are for illustrative purposes only and do not constitute personalized investment advice. They should not be followed exactly: adapt the strategy to your goals, time horizon, liquidity needs, and risk tolerance.
Conclusion
Choosing the right investment horizon is just as important as choosing the asset itself. Understanding the differences between short-, medium-, and long-term investing allows you to build a balanced strategy aligned with your real objectives. Thanks to platforms like Urbanitae, you now have access to well-structured projects in each of these categories, with transparent information and the ability to diversify according to your needs.
Investing with vision is not only about seeking returns but about aligning each decision with your current financial stage. The time horizon matters—and managing it wisely can make the difference between a successful investment and a missed opportunity.
