Fashionable group picture (5)
I believe the answer is:
inset
'picture' is the definition.
(inset is a kind of picture)
'fashionable group' is the wordplay.
'fashionable' becomes 'in' ('in' can be similar in meaning to 'fashionable').
'group' becomes 'set' (set is a kind of group**).
'in'+'set'='INSET'
(Other definitions for inset that I've seen before include "Synagogue singer" , "Picture inside a larger one" , "Small picture inserted within a larger one" , "day for teachers" , "Small picture placed within a larger one" .)