Constant Dollar Plan

Business, Legal & Accounting Glossary

Definition: Constant Dollar Plan


Constant Dollar Plan


What is the dictionary definition of Constant Dollar Plan?

Dictionary Definition


An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan. also called dollar cost averaging.


Related Phrases


variable ratio plan


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Definition Sources


Definitions for Constant Dollar Plan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd October, 2021 | 0 Views.