[2] One of the main benefits of the bullet strategy is that it allows the investor to minimize the impact of fluctuations in the interest rate, while still realizing excellent returns on the investments.
Staggering the acquisition dates of the assets means that the risk associated with interest rates is diluted.
The investor is able to pick up good deals on various bonds and other securities along the way, arranging the maturities to coincide with the desired final date.
One of the advantages of the bullet strategy is that the investments are acquired and then set aside until the maturity date arrives.
However, for people who are thinking in terms of creating a windfall in revenue at a given point in time, this approach is an excellent solution.