Thoughts on アライアンス－アライアンスバーンスタイン米国成長株投信Ｄ毎月Ｈ無予想分配金提示型?

[neoteric]

I saw SBI offering アライアンス－アライアンスバーンスタイン米国成長株投信Ｄ毎月Ｈ無予想分配金提示型, a dividend based mutual fund with SP500 benchmark. Paying decent dividend, 200 yen/unit. Does that mean if I buy 500 unit, I would be getting 10man dividend monthly?

Anyone with this holding?

[RetireJapan]

Hmmm. Had a quick look at the prospectus, didn't really understand how they are paying that dividend while mostly holding tech stocks (that don't pay any/big dividends). Are they returning your capital as part of that? Also annual fee 1.727%. Also it's hedged.

Can anyone explain this in simple terms?

[adamu]

The prospectus says it's per 10,000 units, so that would be 1000 yen, not 100,000.

Although I didn't really understand the table from a quick look - page 15 of the PDF. It seems to say no guaranteed dividend if the price is under 11k, but not sure.

[neoteric]

Thx everyone for the info, trying to use Google Translate but it is not quite clear

Is 11,591 base price is for 1 unit? I am so confused :p

[Kanto]

Thx everyone for the info, trying to use Google Translate but it is not quite clear

Is 11,591 base price is for 1 unit? I am so confused :p

Yes, 1 unit per share.

This is a monthly distribution fund. Part of the principle is being dolled out per month per unit of the stock.

The principle will shrink as a result.

https://search.sbisec.co.jp/v2/popwin/i ... nd_01.pdf

https://www.rakuten-sec.co.jp/web/info/ ... 01-01.html

http://www.morningstar.co.jp/FundData/S ... 2014091602

.................

This fund is tax-inefficient, so if you were to buy it you would want it to be in a NISA.

Those fees are insanely high.

Why not just buy a cheap S&P500 ETF or Mutual fund?

[neoteric]

You are right, thank you, just saw emaxis slim sp500. Thank you so much for all the help guys

[Viralriver]

This fund is tax-inefficient, so if you were to buy it you would want it to be in a NISA.

Those fees are insanely high.

Why not just buy a cheap S&P500 ETF or Mutual fund?

Curious what you mean by this - regardless of the fees, doesn't NISA just mean we pay 0 on capital gains tax? Why would the fees for a fund have any affect on whether it should be in NISA or not?

[RetireJapan]

Curious what you mean by this - regardless of the fees, doesn't NISA just mean we pay 0 on capital gains tax? Why would the fees for a fund have any affect on whether it should be in NISA or not?

It's not the fees, but the dividends. They would be tax-free in a NISA, but incur a 20% tax outside of it...

[Kanto]

This fund is tax-inefficient, so if you were to buy it you would want it to be in a NISA.

Those fees are insanely high.

Why not just buy a cheap S&P500 ETF or Mutual fund?

Curious what you mean by this - regardless of the fees, doesn't NISA just mean we pay 0 on capital gains tax? Why would the fees for a fund have any affect on whether it should be in NISA or not?

If a fund is in a NISA, you do not need to pay tax in capital gains or dividends.

Funds are only taxed in Japan upon sale, or upon receival of dividends.

Funds that pay dividends are not tax-efficient because you need to pay tax every time there is a dividend payment.

.....

A growth strategy, (I.E non-dividend stock, ETFs, Mutual funds etc) is more tax-efficient. No taxable events are created until the sale of the stock.