A model portfolio is a professionally designed investment blueprint. It acts as a standardized template created by an investment research firm (the Provider) to accomplish a specific strategy. They are comprised of Baskets and/or individual positions.
Position Weights: The portfolio specifies the exact percentage of the account that should be held in each security called a weight.
Active Management: The Provider monitors the market and decides when to change those percentages or swap one security for another (rebalancing).
Replication: When you track a model portfolio through Plutus, your brokerage account is automatically adjusted to mirror that reference strategy.
Model portfolios range from broad index-sized strategies with over 500 positions to highly concentrated selections. The provider manages the exact composition and all ongoing changes.
Chef and Kitchen Analogy
The Provider is the Chef who creates the recipe (the Model Portfolio).
Plutus is the Kitchen Staff who prepares the meal (executes the trades) in your account.
The Model Portfolio is the Recipe itself.