The portfolio will consist of bonds maturing in no more than five years, and the entire portfolio should have a dollar-weighted average maturity of three years or less. Conservative Principal Priority. Even the most conservative investors can take advantage of some of the relative values in the bond market this year. No bonds should be callable. Aggressive Principal Priority.
More aggressive investors can still make principal priority a goal.
Speculative Principal Priority. This portfolio is no contradiction in terms. Your portfolio might use a high degree of credit risk to boost return over short-maturity periods. These securities are definitely not for all everyone. They are not suitable for conservative or aggressive investors.