One fund to rule them all?

[Michel]

Looks great.

It seems to be more expensive than building it yourself from the three funds (figures change depending on what proportion you allocate to each fund):

三菱ＵＦＪ国際－ｅＭＡＸＩＳ Ｓｌｉｍ 先進国株式インデックス 0.11772% * 80% asset allocation
三菱ＵＦＪ国際－ｅＭＡＸＩＳ Ｓｌｉｍ 新興国株式インデックス 0.20412% * 12% asset allocation
三菱ＵＦＪ国際－ｅＭＡＸＩＳ Ｓｌｉｍ 国内株式（ＴＯＰＩＸ） 0.17172% * 8% asset allocation
= 0.132408%

But the All Country fund:
三菱ＵＦＪ国際－ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） 0.15336％

So it's more expensive, but the simplicity and auto-rebalancing probably make it worth it. I wonder how they decide the asset allocations and what they are? Need to read the prospectus in more detail.

This fund is probably the answer I was looking for in these threads.
viewtopic.php?f=11&t=310
viewtopic.php?f=11&t=184

Interestingly enough I just watched an interview of John Bogle saying that rebalancing wasn't all that necessary (not a bad thing either). His argument was selling the good performing asset to rebalance wasn't necessarily the best thing to do in the long term.
Now I'm not sure I really understand all this, I'm barely starting to grasp this all thing, but taking his advice into account, wouldn't it better then to take the eMAXIS separately and leave it be and just let the market do its thing?

[adamu]

Please link to the interview if you have it.

The one I saw, he said he thought it was a very good idea but he doesn't bother. Then again, he also only invested in the US.

The benefit of rebalancing is that you sell high, and buy low. The downsides are transaction costs, regret if the market moves against the trade you just made, and working out when and how-often to do it.

I think Bogle's point is to don't worry about it too much. If you're invested in whole-market index funds and putting new money into your desired asset allocation, you'll probably be fine. But if there's a fund that handles the rebalancing for you and makes the investing process simpler, as long as there isn't too much of a cost penalty, then it can't hurt.

For my own investments, I decided to buy the all-country fund in NISA and taxable accounts, and for iDeCo, where it's not available on SBI's platform because they offer their own product*, I will mix-and-match the individual funds.

*the SBI fund has nominally lower fees, but also wraps up US-listed ETFs so as far as I understand it has hidden tax costs and extra currency risk, plus I don't like giving them money to just resell somebody else's fund

[Michel]

https://youtu.be/3uJbHREmUs4

He talks about it around 48min in the interview.

[adamu]

Thanks.

I think there's a big difference, because in that interview he's talking about balancing stocks and bonds, not balancing keeping a market-capitalization based stock portfolio in line with the market capitalization. For trying to hold the world in stocks, you either need a fund that buys all the stocks available, or you need to build that fund yourself and keep it up to date. It's a similar point, although if index funds followed that logic, they would completely stray away from the index.

Having said that, in the same interview he said that gold is not an investment, then said in the fund he manages he invested in gold.

[inaka_rob]

Sorry if I am not grasping something. I am looking for a growth fund or one that automatically reinvests the dividends. I just want to buy something and forget about it. I was looking at 三菱ＵＦＪ国際－ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）

I have an SBI account and was looking at this fund on their website (through google translate) and I don't see where this type of info is given.

[adamu]

I am looking for a growth fund or one that automatically reinvests the dividends. I have an SBI account .. I don't see where this type of info is given.

When you buy the fund, you select 再投資 (reinvest dividends).

[Kitkat]

Is there a ticker name or number for the fund ?

Easy enough to find on SBI but was trying to look it up on Interactive brokers.

Thanks.

[adamu]

As far as I know Japanese mutual funds don't have any identifier other than their name.

It looks like Interactive brokers doesn't deal with Japanese mutual funds, although I'll happily stand corrected.

[Kitkat]

Thank you for the quick reply, that helps a lot.

[Rezz]

I've been drip feeding money into this fund over the last few months, but every time I do it reaches a new low the following week or two. Dollar-cost averaging is good and all that, but it feels like I'm chasing the bottom. Tempted to put another load of cash in now it's lower again