A model portfolio is a data based form of investment research built with a specific investment objective in mind and maintained by a research firm (the Provider). The investment objective is typically tied to the intended outcome of a portfolio, for example, growth, income, and balanced.
Portfolios are comprised of smaller subunits called Baskets and individual equity positions, and may contain short positions and US options.
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 updates their research, for example changing the position eights or swapping one security for another.
Replication: When you track a model portfolio through Plutus, your brokerage account is automatically adjusted to mirror that reference strategy. More information here on how to get setup.
More focused thematic strategies are listed as Baskets.