Constant Ratio Plan

Business, Legal & Accounting Glossary

Definition: Constant Ratio Plan


Constant Ratio Plan


What is the dictionary definition of Constant Ratio Plan?

Dictionary Definition


An investment strategy in which the portfolio’s composition by asset class is maintained at a certain level through periodic adjustments. When the balance is upset, it is periodically restored by moving money from overperforming assets to underperforming ones. This system prevents one asset class from dominating the portfolio. This is one way to maintain a desirable asset allocation.


Related Phrases


variable ratio plan
ratio


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Definition Sources


Definitions for Constant Ratio 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.