Bullet strategy

In finance, a bullet strategy is formed when a trader invests in intermediate duration bonds, but does not invest in the Long and Short duration bonds.

The bullet strategy is based on the acquisition of a number of different types of securities over an extended period of time, but with all the securities maturing around the same target date. 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.