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How to Improve True Diversification®
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Simple Explanation
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Gsphere, a software platform developed specifically for the investment industry,
utilizes a complex genetic algorithm, mathematical processes, and a patented visual
mapping system to produce True Diversification®. Without the aid of the Gsphere
platform, the only method to achieve True Diversification® is the time and cost prohibited
process of trial and error. However, achieving better diversification of portfolios
can be attained by following 5 simple steps.
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5 Simple Steps to Achieve Better Diversification In Your Portfolio
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1. Add uniquely behaving (low correlated) assets to the portfolio
2. Adjust the allocation of existing assets to moderately favor unique assets
3. Adjust the allocation of existing assets to prevent excess weightings of individual
assets
4. Moderately reduce the number of assets that behave similarly - excessive number
of similar assets or holdings in the same asset class can actually detract from
diversification.
5. Add select assets that aggregate individual holdings (Mutual Funds, ETFs, or
Indexes)
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Note: There is a distinct difference between more diversification, better diversification,
and True Diversification®. More diversification can be achieved by simple adding
assets to a portfolio. Better diversification can be achieved by adding efficient
assets or removing inefficient assets from a portfolio. True Diversification® can
be achieved utilizing Gsphere’s patented diversification platform.
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For individual investors to Achieve True Diversification® see your Gsphere Certified
Advisor. To locate a Gsphere Certified Advisor near you, click here.
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Advanced Explanation
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For financial professionals, contact your Gsphere Certified Professional.
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