Dumb question about the earned dividends in Tsumitate NISA each day

[mhytokiha]

Please extend some patience because this might be a dumb question.
So last August 2022, I am able to finish the setup of may account in SBI and finally able to deposit on my Tsumitate Nisa Account worth 200,000￥ by using the bonus feature last September 1.

I put funds on
-eMAXIS Slim Global Equity (All Country)
-SBI-SBI V S&P 500 Index Fund

I monitor the funds everyday to see if it can earn dividends or what is happening to the funds.
Estimate only:
One day it is 202,000
Next day it is 199,000
next day it is 204,000
then next day it will be 207,000 and yesterday back again at 202,000

Remember the original amount is 200,000.
QUESTION: What happen to the earned/lost amount/dividends?
For example it earned 7000 in a day ,Can I withdraw that amount ?
Is Tsumitate Nisa supposed to be that way, or you just leave it ?


Has that something to with the setting I set?
投信分配金の再投資：
NISA・つみたてNISA預りの投信分配金をNISA・つみたてNISA口座優先で再投資する

What setting am I missing? Please share some links so it can help me. Thank you very much in advance.

[RetireJapan]

Welcome to the forum!

There are perhaps three parts to your question:

1) depending on the funds, it is likely that any dividends are reinvested internally and not paid out (this is more tax-efficient)
2) the price of the funds going up and down is called volatility, and depends on what is in the funds as well as exchange rates if the funds contain non-Japanese assets
3) generally speaking it is best to leave tsumitate NISA alone for as long as possible to allow it to grow tax-free (if you take anything out you will not be able to put it back in again)

Hope that helps!

[zeroshiki]

A fund going from 200k to 2007k does not mean you earned dividends on it. It could be but its just the value of the securities inside it changing (could be actual value changing, more quantities, forex, etc). The only way to get that money is to sell the fund which no one here will recommend after 1 month.

[mhytokiha]

Oh I see now. I just thought that others are earning by withdrawing the earned +YYY daily. But now I understand it does not work that way.
Thank you for pointing out that it is reinvested internally and not paid out. I think I will just leave it alone there to be more tax-efficient. I will just keep putting some amount once I had some extra since I started late.

But just to verify, following your suggestions not withdrawing, is the setting in my Tsumitate NISA correct?
Am I suppose to let that setting be?
投信分配金の再投資：
NISA・つみたてNISA預りの投信分配金をNISA・つみたてNISA口座優先で再投資する.


Thank you very much.

[zeroshiki]

Reinvestment of dividends don't matter for those funds since they don't pay out dividends, they re-invest internally. So it doesn't matter.

[mhytokiha]

Thank you for confirming. I also read that it was the default setting when setting up the account. So it makes sense for the Tsumitate Nisa.