What is a long term investment

What is long term investment:

Growth in revenues, operating profits and net earnings is integral to fundamentally strong companies. 
Revenue growth indicates strong demand for a a company's products and the pricing power it commands in the market. Growth in operating profits indicates cost efficiencies through expenditure cotrol. Improvement in net earnings or profits is an indicator of wealth creation for shareholders. To identify robust stocks, these financial parameters need to be evaluated over an extended period of time.

In Long term investment financial experts advise investors to hold stocks for long enough around five years to allow their prices to align with their intrinsic or fair values. This is because in the long run, the fair value of a stock is largely a factor of its fundamental metrics profits and cash flows.

Where invest money for long term investment:

Investing is a purchase of assets with an objective to generate regular income, profit or capital appreciation, which can be sold in future.
There are multiple long term investing products like real estate, bonds, equities, gold etc. With varied features and benefits. Choosing the right product is most critical party of investing process. One should carefully analyse attributes of the asset before investing in an assets.

Liquidity:

In Long term investment liquidity of an investment is the most important thing that an investor should watch out for putting money in any product. Listed share of a comapny is easy to sell than a property which is located in an elite area. Thus equities are liquid investment while real estate is an illiquid investment.

Risk:

Risk is the second factor that an investor should consider before investing. Risk means the chance of not meeting the expected return from investment.

Return:

Return means the actual profit we make on our investment. Return can be interest, dividend or profit on the investment. Different assets have different return potential. Empirically, it has been noted that equities give more return than other assets.