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How laddering, barbell can get better returns for FDs

Fixed deposits (FDs) are a popular investment option in India, but investors may not be aware of barbell or laddering strategies that can boost returns. The barbell strategy involves dividing an FD portfolio into short-term and long-term deposits to take advantage of interest rate fluctuations, while the laddering strategy involves spreading investments across different maturities. Careful selection of the compounding period can also enhance returns. However, both strategies carry risks, such as lower overall returns due to interest rate fluctuations, reduced liquidity and exposure to interest rate risk. Regular assessment and diversification can help mitigate these risks.
Source: money

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