Daily Tsumitate

[TokyoBoglehead]

I am trying some a little new. Instead of monthly purchases, Monex allows for a lot of customization. They even allow for daily tsumitate.

I set a daily 2500 Tsumitate. (Average of 20 market days a month So 60man ish yearly)

- See attached.

Thoughts? Probably won`t make much of a difference....

[TokyoBoglehead]

I am trying some a little new. Instead of monthly purchases, Monex allows for a lot of customization. They even allow for daily tsumitate.

I set a daily 2500 Tsumitate. (Average of 20 market days a month So 60man ish yearly)

- See attached.

Thoughts? Probably won`t make much of a difference....

Daily.png

Just note on this there are two options.

A. Invest X amount on market days. every market day. (19-22 average per month)

B. Invest X amount equally over all market days in the month.

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

B is vastly more manageable, as you can set a bank sweep easily. A is a headache as the amount changes every month.

This system is coming to NISA with Monex later in the year too.

[TBS]

What is the point of this? Isn't it just holding money out of the market for longer than necessary, and giving lower expected growth?

At a stretch I could see it making sense for freelancers who have income coming in everyday. But for it to make sense, they'd have to deposit the money in the bank at the end of the day, then manually 入金 it to Monex. Monex's automatic money in service (定期自動入金サービス) only makes a deposit once a month, so daily tsumitate will still have lower expected growth in the long run than just investing it straight away each month.

[TokyoBoglehead]

What is the point of this? Isn't it just holding money out of the market for longer than necessary, and giving lower expected growth?

At a stretch I could see it making sense for freelancers who have income coming in everyday. But for it to make sense, they'd have to deposit the money in the bank at the end of the day, then manually 入金 it to Monex. Monex's automatic money in service (定期自動入金サービス) only makes a deposit once a month, so daily tsumitate will still have lower expected growth in the long run than just investing it straight away each month.

I do due a standard monthly Tsumitate x3 (see my signature). This is just something slightly different.

Monex has some data to argues daily has a slight edge.
https://info.monex.co.jp/fund/guide/eve ... nthly.html

I am basically running my own little experiment.

Theoretically it could help some people with budgeting if they were to allow daily sweeps in the future.

[TBS]

Monex has some data to argues daily has a slight edge.
https://info.monex.co.jp/fund/guide/eve ... nthly.html

In a peerless feat of marketing, the edge of daily tsumitate in the example appears to come from the fact that a) the total amount invested via daily tsumitate is slightly higher, b) they are comparing against investments made at the end of the month, so the daily investments actually spend longer in the market.

In option B from your earlier post, which matches the total investment amount, comparing immediate monthly investments vs slightly delayed daily investments made over the following month, I suspect the answer may be different.

[goran]

anybody know of automated daily tsumitate option in Rakuten?
would love to try it. (parallel with my regular monthly one in normal NISA)

[adamu]

I see where this is going. BRB, building an hourly Tsumitate bot.

[TokyoBoglehead]

In a peerless feat of marketing, the edge of daily tsumitate in the example appears to come from the fact that a) the total amount invested via daily tsumitate is slightly higher, b) they are comparing against investments made at the end of the month, so the daily investments actually spend longer in the market.

In option B from your earlier post, which matches the total investment amount, comparing immediate monthly investments vs slightly delayed daily investments made over the following month, I suspect the answer may be different.

Most Tsumitates and sweeps do hit at the end of the month, to ensure the withdrawals happens after payday.

anybody know of automated daily tsumitate option in Rakuten?
would love to try it. (parallel with my regular monthly one in normal NISA)

Monex only it seems. I would not lose any sleep over it. It will make almost no difference either way most likely.

I see where this is going. BRB, building an hourly Tsumitate bot.

Well Daily is the limit for mutual funds. But bots exist for ETFs!

[goran]

I see where this is going. BRB, building an hourly Tsumitate bot.

You've got your first customer in me!

[TBS]

In a peerless feat of marketing, the edge of daily tsumitate in the example appears to come from the fact that a) the total amount invested via daily tsumitate is slightly higher, b) they are comparing against investments made at the end of the month, so the daily investments actually spend longer in the market.

In option B from your earlier post, which matches the total investment amount, comparing immediate monthly investments vs slightly delayed daily investments made over the following month, I suspect the answer may be different.

Most Tsumitates and sweeps do hit at the end of the month, to ensure the withdrawals happens after payday.

Yes, but in their monthly tsumitate example they are effectively sweeping at the end of the month, then buying at the end of the following month. They are holding onto the cash for a month doing nothing! It is nonsense.