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Build a diversified bond portfolio with staggered maturities for steady income and reinvestment opportunities
Set up your bond ladder structure
Set yields for each bond
Configure your ladder to see results
Bond ladders provide predictable income as bonds mature at regular intervals. Instead of reinvesting all at once, you can reinvest gradually, reducing interest rate risk.
With bonds maturing at staggered intervals, you have regular access to capital without selling bonds before maturity. This provides flexibility to meet financial needs or take advantage of new opportunities.
Laddering averages out interest rate fluctuations. When rates rise, you can reinvest maturing bonds at higher yields. When rates fall, you still have longer-term bonds locked in at higher rates.
Even Spacing: Most ladders use equal intervals (e.g., 1 year) between maturities for simplicity and consistent cash flows.
Reinvestment Strategy: As bonds mature, reinvest at the longest maturity to maintain your ladder structure and benefit from typically higher long-term yields.
Credit Quality: Consider sticking to high-quality bonds (AAA/AA rated) for predictable income. For higher yields, carefully evaluate credit risk.
Tax Efficiency: In India, listed bonds held for >1 year qualify for LTCG treatment (10% without indexation). Plan your ladder with tax implications in mind.