"Cents"-ible Steps

Jones, Dan
August 2005
PN;Aug2005, Vol. 59 Issue 8, p50
Trade Publication
The article presents information about laddered portfolio approach. Adopting a laddered portfolio approach allows investors to minimize the interest rate risk associated with large, short-term, fixed income investments. In a nutshell, this strategy adopts a longer-range outlook and diversifies the maturity structure of fixed income instruments within a portfolio. This enables the total return of fixed income investments to be less adversely affected by interest rate fluctuations. If a person is interested in long-term growth of capital, a seasoned financial advisor might recommend a strategy known as dollar cost averaging.


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