Want higher return from your investments? Use this approach
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Laddering technique: Keep this in mind
It is a technique of buying multiple fixed income products, each with a different maturity.Text: CIEL
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How to get highest return
When a product matures, the money can be reinvested in a new product with highest yield in the available time horizon.
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When laddering works best
In a rising interest rate scenario, the maturing principal can be reinvested at higher rates.
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Follow this rule
By staggering maturity dates, investors avoid getting locked into a single interest rate.
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Remember this
The laddering reduces risk and provides a predictable cash flow with adequate liquidity.
