Quick emaxis Q?

[Hárbarðr]

Seems like the emaxis is very popular for people living in japan.
And I was thinking about getting some which tracks the foreign market. And seem it is all in Yen, i dont need to convert to USD. Which is great. Or so i thought.

But even if i buy in yen, arent the emaxis stocks/ bonds bought in USD? So somehow, somewhere, the conversion fee are being charged, no?

Wouldn't it be better to just get straight up US equities in USD?

Still a beginner and learning. So might be a stupid question?

[Kanto]

People have crushed the numbers here. Shintaro-money is a great resource. https://shintaro-money.com/

Basically yes, but the currency conversion is handled internally and is far more "efficient".


1. American equities - Similiar in price or the American ones have a slight slight edge over Japanese funds.

2. Non-American equities or mixed - Japanese domiciled funds have the edge.

Most people do not want to bother with currency transfers or currency conversions and fees so Japanese funds are the way to go, unless you see something specific that is not available in a Japan domiciled fund.

Note: If you are American none of this applies.

[Hárbarðr]

Mr Kanto,

Thank you so much for all your wonderful advice.

I have yet another question I need some clearing to understand properly.

with investing. The way I see it, there are two ways to go about it (in a nutshell i guess), all with long-term in mind.

1: Invests a lump sum, buy low and hope for the investment to increase with time.
2: monthly contributions (like an iDeco account) whereas you invest some money every month in what ever you see fit.

the first one, I understand the reasoning in buying low and hope to get it higher when time goes by.
But with the second one, how do you actually hope to make money if you invest money every month in a stock/ fund and keep buying it until you are 60 (in the case of iDeco). Cause if I have in mind to spend 23000yen every month on increasing the funds i have, as in, i buy 2 different funds 15000yen each, each month, the purchase price will never be the same from month to month. It could be low a month (good) or high another month (bad).

The question here, for an iDeco type of investment, how do You (anyone) go about investing in it? Do they always buy and sell their funds each month? or buy more in the funds they already have?

I am not sure how to go about doing it.

Thank you again

[Kanto]

Mr Kanto,

Thank you so much for all your wonderful advice.

I have yet another question I need some clearing to understand properly.

with investing. The way I see it, there are two ways to go about it (in a nutshell i guess), all with long-term in mind.

1: Invests a lump sum, buy low and hope for the investment to increase with time.
2: monthly contributions (like an iDeco account) whereas you invest some money every month in what ever you see fit.

the first one, I understand the reasoning in buying low and hope to get it higher when time goes by.
But with the second one, how do you actually hope to make money if you invest money every month in a stock/ fund and keep buying it until you are 60 (in the case of iDeco). Cause if I have in mind to spend 23000yen every month on increasing the funds i have, as in, i buy 2 different funds 15000yen each, each month, the purchase price will never be the same from month to month. It could be low a month (good) or high another month (bad).

The question here, for an iDeco type of investment, how do You (anyone) go about investing in it? Do they always buy and sell their funds each month? or buy more in the funds they already have?

I am not sure how to go about doing it.

Thank you again

This answers your question far better than I could. It is really worth a read -> http://www.smartretirement.com.au/wp-co ... raging.pdf

If you had the funds, front-loading a NISA in January would be better. However, with Tsumitate and iDeco this isn`t an option. However, as these accounts are tax-free it is a small complaint.

[Hárbarðr]

Thank you so much
I'll read it asap and will get back to you with some more questions.

I am very sorry to bother you so much...

[Hárbarðr]

Ok!
read it and understood it.

It'll be good to have 1million to invest a LSI style investment, but that isn't my case.
The LSI i have is far less. I am thinking about 200000-300000yen in a LSI type investment strategy and about 20000yen in DCA type investment strategy.

The next question would be, where to invest the lump some, and where to start investing the monthly investments.

Thank you so much again

[OkiBum]

Ok!
read it and understood it.

It'll be good to have 1million to invest a LSI style investment, but that isn't my case.
The LSI i have is far less. I am thinking about 200000-300000yen in a LSI type investment strategy and about 20000yen in DCA type investment strategy.

The next question would be, where to invest the lump some, and where to start investing the monthly investments.

Thank you so much again

Highly favored in the forum and I personally also invest in these funds: Emaxis Slim Series https://emaxis.jp/

I would personally recommend the Emaxis Slim All Country fund as it is well diversified and includes Developed as well as Emerging Markets. https://emaxis.jp/fund/253425.html

When I started investing in Japan, there was no all country fund so I had to break my head on how to diversify between developed and emerging markets, what % etc. Now, that work has been taken care of and the purchases are done automatically on a monthly basis.

I am a strong believer of keeping things simple so one fund should be good for now unless you want to include assets other thank stocks. I am 32 and 95% of my portfolio is in stocks and 5% in Crypto. (Others might disagree but it all depends on your risk tolerance)

[Hárbarðr]

I am reading a lot of good things about it.
The sad part, since i have a rakuten security account, i cant invest in emaxis for my iDeco account.
should I change a make a monex account instead?

or both?

[Kanto]

I am reading a lot of good things about it.
The sad part, since i have a rakuten security account, i cant invest in emaxis for my iDeco account.
should I change a make a monex account instead?

or both?

No harm in having multiple sec. accounts.

Monex and SBI have better choices for iDeco as they have Emaxis.

Rakuten for Tsumiate Nisa and Tsumitate payments due to Rakuten points.

[Hárbarðr]

Thanks.
I will open a MONEX account too. seems very easy to do so.
And use it for the IDeco option.

I guess Rakuten wont be getting the emaxis fund, but I can use the NISA in Rakuten..

for my lump sum, would it be better to invest in more than one investment? to be on the safer side?
as for the monthly contribution, which will only be max 23000yen a month, what would be the ideal (if there is such a thing) number of funds to invest in?