Model Portfolios are stock portfolios that are managed automatically. Several Model Portfolios are offered by Portfolio123 that consist of different sizes and strategies. You can create your own Model using a Portfolio123 Model as a starting point.

Once a Model is created, prices and P&Ls (Profit and Loss) are updated daily after the market closes. A Model can also rebalance automatically, and the resulting Buy/Sell recommendations will be emailed to you by Monday morning. All you have to do is follow the recommendations using your discount broker.

Investing using Model Portfolios offers several advantages over traditional investing, such as mutual funds:

Low Turnover: Since most of Portfolio123's strategies are based on fundamental and technical parameters, stock ratings don't vary too much from week-to-week. Furthermore since the main selling rule is typically based on the rating, the turnover is usually very low. Most models have a 50% or lower turnover (Mutual funds average 100%).

Easy-to-Follow: Typically you would execute one or two trades a month. Most Portfolio123's models use a monthly rebalance, which means stocks are only re-evaluated once a month. While a weekly rebalance is possible, extensive Simulations have not shown a clear performance advantage, just a higher turnover.

Diversification: Portfolio123 Models typically do not hold more than 10% of the total market value in one particular industry. In our tests we've seen better performance by simply adding this parameter to a trading system. This parameter is, like almost any parameter in a Portfolio123 trading system, customizable by the user.

Mechanical, Consistent Approach: We strongly believe that this is one of the keys to succesful investing. A computer is your best friend, it will only do what you've instructed it to do.

Reduced Costs: By using a discount broker, you can easily follow a Portfolio123 generated Model with less than $20,000, and still pay less in fees and trading costs than the average 1.5% fee of a mutual fund.

Performance: We believe that a systematic, unemotional and diversified investment approach very rarely will do worse than the market. Moreover, by using a Portfolio123 Rating System, you will always be invested in the relative best stocks. This combination, as shown by our extensive Simulations, can lead to incredible market beating returns.

Size: An individual is also advantaged because of size. An individual can buy any stock he/she wishes, and getting in and completely out of positions does not affect the price. Our Models typically have 20-50 positions.