Model portfolio
A model portfolio is a basket of investments defined in terms of the securities and their shares. Model portfolios are used for rebalancing.
There are two ways to define a model portfolio in FA:
Define a model portfolio with fluctuating content and shares. Such a model is created as a regular portfolio linked to a model portfolio. To define the content and shares, create a regular portfolio and add positions in it. In the Model portfolio window, link the portfolio to a model portfolio by selecting it in the Linked portfolio field. To change the content of the model portfolio, record appropriate transactions to the linked portfolio in order to alter the securities or shares in it.
Define a model portfolio with fixed content and shares. Set the date in the Date field from which the model portfolio is valid from and define the securities the model portfolio consists of and the shares of these securities of the model portfolio total. If you want to change the contents of the model portfolio, add a new date with new securities and shares.
Create a model portfolio
You can create a model portfolio manually or by importing it. To learn more about importing model portfolios, see File formats for importing model portfolios in FA Back reference.
To create a model portfolio manually, do the following:
Open the Rebalance view and click Model portfolio at the bottom of the veiw.
Click Add and fill in the fields. For the field descriptions, see Model portfolio window in FA Back reference.
Click Save.
After you create a model portfolio, you can use it for rebalancing (see Rebalance). If you want to rebalance your portfolios against a combination of model portfolios (for example 20% of stock portfolio and 80% of bond portfolio), see Create a composite investment plan.