Portfolio Diversification
/ˌpɔrtˌfoʊlioʊ ˌdaɪvərsɪfɪˈkeɪʃən/
Definitions
- (n.) The legal strategy of allocating investment assets across various financial instruments, sectors, or jurisdictions to reduce risk and comply with fiduciary duties.
The trustee employed portfolio diversification to fulfill her fiduciary duty and minimize the trust's exposure to market volatility.
Forms
- portfolio diversification
Related terms
See also
Commentary
In legal drafting, specifying portfolio diversification may clarify compliance with fiduciary standards to mitigate liability for investment decisions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.