You’ve likely heard it a dozen times – diversify your portfolio for maximum gains and protection against major market fluctuations. But what does that really mean?
Diversity in your financial portfolio refers to spreading your investments throughout multiple assets so that your exposure to any one type is limited and minimized. This process is designed to help reduce the volatility of your investments over time.
In other words, as the saying goes, “don’t put all your eggs in one basket.” Investing your money in more than one suitable asset is believed to reduce your financial risk and improve your chances of profiting.
Financial Advisor’s Responsibility
When you work with a brokerage firm, they will likely have access to bonds, stocks (both domestic and international), Hedge Funds, Private Equity, Money Market Funds, Certificates of Deposit, and other short and long-term investment options. Unfortunately, some financial advisors fail to recommend and implement a diversified portfolio for their clients.
You have the right to rely on your financial advisor to understand your financial goals and place you in options to meet those objectives. And if those objectives are not met, you may be able to file a complaint against your financial advisor or pursue legal action for your losses. You may be compelled to arbitrate your dispute via FINRA- for more on that process, read our blog posts about FINRA arbitrations.
If your financial advisor places a large portion of your money in just one type of investment, he/she may be exposing you to substantial, unjustified financial risk. If the investment goes bad, you can suffer losses. In certain cases, you can recover from bad financial advice and possibly recover stock trading losses.
Remember, diversification does not ensure a profit or guarantee against loss. But lack of diversification may unnecessarily increase your risk and diminish your chance of seeing a high return.
Voytas Law May Be Able to Help Recover Your Losses
Although no financial advisor can eliminate your investment risk completely, it is their responsibility to recommend suitable investments and investment strategies. And in the financial investment world, this means diversifying your portfolio.
If you believe you have sustained losses due to the actions of your financial advisor in Missouri and Illinois, call us at Voytas Law, LLC.
Rick Voytas of Voytas Law, LLC is a trial lawyer who combines objective advice with the tactical know-how to obtain the compensation you deserve.
Rick Voytas has more than nineteen years of courtroom and litigation experience, handling a variety of difficult cases.
As a native of St. Louis and licensed in Missouri, Illinois, and various federal courts, Rick Voytas provides knowledge and personal attention to your legal matter
Don’t delay! Contact Voytas Law, LLC now for your investment-related legal problems in Missouri and Illinois at 314-380-3166 or learn more at www.voytaslaw.com.
The choice of a lawyer is an important decision that should not be based solely upon advertisements.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements. Past results afford no guarantee of future results; every case is different and must be judged on its own merits. Neither the Supreme Court of Missouri, nor The Missouri Bar reviews or approves certifying organizations or specialist designations. The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law. Images on this site include simulated portrayals of lawyers, clients, victims, scenes and events.
