To create a portfolio, use the New button in the All Portfolios view:
There are two kinds of portfolios:
- Model portfolios
- the positions are defined by weights (%)
- weights remain the same until you change them
- the portfolio has no specific value
- useful for hypothetical portfolios and historical tests
- Real portfolios
- the positions are defined by number of shares
- weights are calculated every day based on the end of day value of the positions
- the portfolio value may be tracked
- historical testing is limited (for example, rebalancing is not supported)
When creating a new portfolio, you decide the type of portfolio (model or real) as shown below:
The third option Group can be used to combine real portfolios in a household view.
Later, you have the option to convert a model portfolio to a real portfolio, and vice-versa, through the Edit menu.
Portfolios defined in other systems may be imported into Portfolio Lab. Refer to the Import Data section for more information.