MiFID II requires that the investment horizon be included in the target market defined by the product manufacturer. The distributor must then verify its suitability with the client's expectations. This requirement is formalised in Article 25 of MiFID II.

The European MiFID Template (EMT) is the standardised format for communicating target market information, including the investment horizon. It facilitates transparency and comparability between products.

Money market funds, with their near-zero volatility and daily liquidity, are suitable for very short horizons. According to market practice, these funds are suited for holding periods of a few days to three months.

Determining the investment horizon is based on five interdependent dimensions: the dominant asset class, expected volatility, asset liquidity, management strategy and tax characteristics. These criteria are essential for meeting the regulatory requirements of the KIID and KID.

Although tax characteristics (such as the minimum holding period required to benefit from tax advantages) must be taken into account, they should not be conflated with the economic horizon. The latter is based on technical criteria such as volatility and liquidity.

The correspondence grid is as follows: SRRI 1-2 (a few days to one year), SRRI 3-4 (one to three years), SRRI 5-6 (three to five years), SRRI 7 (five to ten years). This grid is established by market practice and must be documented in the prospectus.

The criteria are classified according to their nature: some relate to the technical characteristics of the fund (asset class, volatility), while others concern the regulatory or tax framework. This classification helps structure the analysis.

Funds with an SRRI of 5 or 6, displaying volatility of 10% to 25%, require a horizon exceeding three or five years. An SRRI of 5 therefore does not correspond to a short-term horizon.