In the previous section, we discussed the idea behind portfolio baskets and why structures like smallcase became useful for Indian investors.

Managed portfolios in global markets follow a similar principle. They allow investors to access a curated basket of companies built around a clear investment strategy. But the way these portfolios are structured is slightly different from how traditional investment products work.

The first important point is ownership.

When you invest in a managed portfolio on Vested, you are not purchasing units of a pooled fund. Instead, the underlying stocks and ETFs are purchased directly in your own brokerage account (this is the major difference compared to any fund-based investment). 

Each company in the portfolio appears as an individual holding, just as it would if you had bought those stocks yourself.

The portfolio simply defines the structure.

For example, a portfolio may allocate 20% to one company, 15% to another, and smaller weights to several other companies. When you invest, your money is distributed across those securities in the same proportions. The result is that your account holds the same basket of stocks as the model portfolio.

This structure has an important implication.

Because the securities are held in your own account, you continue to have full visibility and ownership of the underlying holdings. You can see each company in your portfolio, track its performance, and understand how the portfolio is composed.

The role of the research team

The second component of the structure is the research process.

Before a portfolio is made available, the research team identifies the companies that represent the strategy or theme. This involves evaluating business models, sector dynamics, and how different companies contribute to the broader idea behind the portfolio.

The team then decides how the allocation should be distributed across the selected companies. Some may receive larger weights because they play a central role in the theme, while others may be included with smaller allocations to broaden the exposure.

The objective is not simply to collect companies within a sector, but to construct a portfolio that reflects the underlying investment thesis in a balanced way.

Monitoring and portfolio updates

Once a portfolio is created, it is monitored over time.

Markets evolve, companies change, and sometimes the investment thesis itself develops as industries mature. As a result, the allocation within a portfolio may occasionally need adjustment.

When such changes are required, the research team proposes an update to the portfolio. This could involve adjusting weights, adding a new company, or removing one that no longer fits the original thesis.

Investors are informed about these proposed changes along with the reasoning behind them. The update is executed only after the investor reviews and approves the change.

A structure designed for flexibility and control

This structure combines two elements that many investors look for.

On one hand, the research, portfolio construction, and ongoing monitoring are handled by professionals. On the other hand, the securities remain in the investor’s own brokerage account rather than inside a pooled vehicle.

For investors exploring global markets, this approach provides a way to participate in structured portfolios while continuing to hold the underlying stocks directly.

In the next section, we will look at the two broad categories of managed portfolios and how they are typically used by investors.