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 information about constant ratio plan:
- Constant Ratio Plan Definition | Investopedia
An asset allocation strategy in which assets are assigned a fixed percentage in a portfolio and readjusted to their target weights periodically. The readjustment ...
- What is constant ratio plan? definition and meaning
Definition of constant ratio plan: An investment strategy in which the portfolio's composition by asset class is maintained at a certain level through periodic ...
- Constant Ratio Plan - Financial Dictionary - The Free Dictionary
Maintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments.
- Constant Ratio Plan - Financial Web
The constant ratio plan is an asset allocation strategy that establishes fixed ... For example, a typical constant ratio plan could be made up of an allocation of 45 ...
- What is a Constant Ratio Plan?
Constant ratio plans are examples of an investing approach that defines the contents of a portfolio based on asset classification. Essentially, the constant ratio ...
- constant ratio plan - Business Definition
constant ratio plan definition: A formula plan for investing in which the market value of all stocks in an investor's portfolio is kept at a predetermined percentage, ...
- Portfolio Revision Formula Plans 3: Constant Ratio Plan - YouTube
Jan 13, 2011 ... This episode discusses the simple constant-ratio portfolio revision strategy.
- Formula Investment Plans: Dollar-Cost Averaging, Constant-Dollar ...
The constant-ratio plan is similar to the constant-dollar plan in that they both consist of a speculative portion for greater capital gains and a conservative portion ...