Long-term investments refer to assets that are held for an extended period, typically more than five years. These investments can include stocks, bonds, real estate, and mutual funds. The goal is to grow wealth over time, benefiting from compound interest and market appreciation. Investors often choose long-term investments to ride out market fluctuations and reduce the impact of short-term volatility. By focusing on the long-term potential of their assets, individuals can achieve financial goals such as retirement savings or funding education, while also taking advantage of the benefits of diversification and asset allocation.