You have two separate issues here Mark.
Firstly, when you scale down a model the weight (or displacement) reduces by the cube root of the scale factor. So at 1/5th scale the model displacement wil be the original boat displacement divided by 5x5x5 or 125.
However, the area of the model reduces by only the square root so the sail area of the model will be the sail area of the original boat divided by 5×5 or 25.
This of course means that on on a model the sail area will be very disproprortionate to the displacement compared with the original vessel with l/25th of the sail area sitting on 1/125th of the the original weight. You can't add weight to the keel to offset this as it would drag the hull down below its correct waterline so the normal practice is to increase the 'mechanical advantage' of the keel by lowering the keel weight to help balance the increased relative pressure on the sails. And that is why most scale sailing vessels have external detachable keels even when the original boat carries all its ballast within the hull. They wouldn't work otherwise, unless reefed right down all the time.
Another way to explain it is to imagine a see saw balanced in the middle. If the weight at each end is the same then it will stay level. But it will also stay level if you reduce one weight but move the point of balance towards the original weight at the other end. Basically this is what you are doing with your model yacht with the sails and keel acting as the weights which are balanced around the centre of gravity within the hull.
There are of course other scale factors involved such as the wind strength on a model usually being proportionately much greater than on the real thing. All this is why you can see photos of sailing ships carrying clouds of canvas that no model could possibly match unless the keel is cemented into the bottom of the pond!
Hope this explains it a bit!
Colin
Edited By Colin Bishop, Website Editor on 21/11/2012 13:45:55