Diversifying an investor’s accounts is one of the key tools to successful portfolio performance. Diversifying an investor’s account is a topic that is stressed throughout the Series 7 study materials. Unfortunately, even investment professionals that score well on the securities licensing examinations fail to adequately diversify investor portfolios. Too often investment professionals fail to spread an investor’s assets among different sized companies and varying segements of the market. The same can be said in the fixed income space. Investor’s fixed income portfolios should not be concentrated in the same sectors or issuers, and the maturity durations of the underlying investments should be diversified as well.
An investment professional that fails to adequately diversify an investor’s portfolio substantially increases the volatility in the portfolio. The increased volatility exponentially raises the potential for substantial market losses. Failing to diversify an investor’s portfolio is a breach of fiduciary, negligence, and further evidences that the investment professional was not properly supervised by the bank, brokerage firm, or investment advisory firm. If your investment professional has over concentrated portions of your portfolio, you may have a claim for damages.
Legal Help for Victims of Securities Fraud
Gilman Law LLP is a leading securities fraud law firm and is here to help you recover damages for the overconcentration of your investment. For a FREE evaluation of your case, please fill out our online form, or if you need to speak to an attorney right away CALL TOLL FREE (1-888-252-0048) today.
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