How is a model portfolio different from an equity basket?

A basket is typically thematic (8-15 stocks). A model portfolio is a complete, diversified portfolio across sectors and market caps (15-25 stocks) designed as your primary equity allocation. Baskets are satellite holdings; model portfolios are core holdings.

What is the typical return expectation?

Returns vary by market conditions and RA style. No return can be guaranteed. Evaluate historical performance while remembering past results do not guarantee future returns. The goal is to beat the relevant benchmark over 3-5 years.

How much capital do I need to follow a model portfolio?

Typically Rs 3-10 lakh depending on the number of stocks and prices. The RA specifies a minimum recommended investment. With smaller amounts, you can approximate allocation weights.

How is a model portfolio different from PMS?

PMS requires minimum Rs 50 lakh, and the manager executes trades with discretionary authority. A model portfolio is a recommendation service — you execute trades yourself. No minimum beyond what is needed to buy the stocks, and fees are typically a flat subscription.

How frequently are model portfolios rebalanced?

Most are rebalanced quarterly after earnings season. Some RAs make interim changes for significant events. Less frequent rebalancing is more tax-efficient. Frequency is specified in subscription details.

Should I track performance using XIRR or absolute returns?

XIRR is the correct metric as it accounts for timing and size of each cash flow. Absolute returns only work for a single lump-sum investment. Finamize's dashboard calculates both automatically.

Model Portfolios by SEBI Research Analysts | Finamize

Overview

Individual stock picks do not tell you how to build a complete portfolio — how much to allocate to each stock, how to diversify across sectors and market caps, when to rebalance, and how to manage position sizes.

Individual stock picks do not tell you how to build a complete portfolio — how much to allocate to each stock, how to diversify across sectors and market caps, when to rebalance, and how to manage position sizes. Model portfolios from SEBI-registered Research Analysts solve this by providing a complete, ready-to-follow portfolio design.

A model portfolio typically contains 15-25 stocks with defined allocation weights, sector distribution, and market cap mix. The RA designs the portfolio as a cohesive whole — considering correlations, concentration limits, and overall risk parameters. Unlike accumulating random stock recommendations, a model portfolio ensures deliberate diversification with position sizing specified for each holding.

On Finamize, model portfolios comply with SEBI (Research Analysts) Regulations, 2014. You execute all trades in your own demat account — the RA never has access to your funds. The platform provides performance attribution, drawdown analysis, and overlap checking against your existing holdings. Capital gains tax applies on rebalancing — STCG at 20% and LTCG above Rs 1.25 lakh at 12.5%.

Why Finamize

Why Choose Finamize

Complete Portfolio Design

Not just individual stock picks — a complete portfolio with 15-25 stocks, allocation weights, sector distribution, and cap-size mix designed to work as a cohesive whole.

Risk-Managed Construction

Portfolios are built with position sizing, sector limits, and drawdown management in mind. Not 50% in one stock — proper risk diversification.

Quarterly Rebalancing

The RA reviews the model portfolio quarterly — adding new ideas, trimming overweight positions, and exiting stocks that no longer meet the investment thesis.

Benchmark Comparison

Track portfolio performance vs Nifty 50, Nifty 500, or relevant benchmarks. Understand whether active management is generating alpha over index investing.

How It Works

Get Started in 3 Steps

1

Choose a Model Portfolio

Browse portfolios by style (growth, value, GARP, dividend), risk level, and minimum investment. Read the RA's investment philosophy.

2

Subscribe & Replicate

Access the full portfolio with current holdings and allocation weights. Buy the stocks in your own demat account in the recommended proportions.

3

Follow Updates

Receive quarterly rebalancing alerts with changes and rationale. Adjust your holdings accordingly to stay aligned with the model portfolio.

Platform Features

What You Get

01

Portfolio Composition View

Every stock, allocation weight, sector classification, market cap category, entry rationale, and current status on a single page.

02

Sector/Cap Allocation Chart

Visual breakdown of sector distribution and market cap mix showing how diversification is maintained.

03

Quarterly Rebalancing Alerts

Detailed notifications each quarter with stocks to add, exit, increase, or decrease — along with rationale for each change.

04

Performance Attribution

Understand which stocks and sectors contributed most to returns (or losses) during each period.

05

Drawdown Analysis

Track worst peak-to-trough declines historically to understand downside risk and set realistic expectations.

06

Overlap Check with Existing Holdings

Upload current holdings to identify overlapping stocks and prevent unintended concentration.

Regulatory Framework

Model Portfolios Under SEBI Framework

1

Model portfolios on Finamize are created and managed by Research Analysts holding valid SEBI registration under SEBI (Research Analysts) Regulations, 2014, ensuring regulatory compliance and investor protection.

2

No Research Analyst is permitted to guarantee returns on a model portfolio. All performance claims must be accompanied by mandatory disclaimers and risk disclosures as prescribed by SEBI.

3

Performance of model portfolios must be displayed with mandatory disclaimers including the statement that past performance does not guarantee future results and that actual returns may differ from model returns.

4

Investors execute all trades in their own demat and trading accounts. The RA provides the portfolio composition and updates — they cannot have custody of investor funds or execute trades on behalf of investors.

5

Research Analysts cannot have custody of client funds or securities. The RA's role is limited to providing research and portfolio recommendations — all execution and fund management remains with the investor.

6

Capital gains tax applies on each trade executed during portfolio rebalancing. Short-term capital gains (under 12 months) on equities are taxed at 20%, and long-term capital gains above Rs 1.25 lakh annually are taxed at 12.5%.

FAQ