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Prestia / SMBC Trust: buying mutual funds
Posted: Tue Apr 04, 2023 8:56 am
by ToushiTime
Hi, I'm not sure if I should post this in the stock investing forum, but does anyone know about buying mutual funds from Prestia / SMBC Trust Bank?
I have an account with them and was wondering whether they add on fees beyond what I pay in my online brokerage accounts.
I looked at the funds they sell here
https://www.smbctb.co.jp/investment/mutualfunds/ but couldn't work out how the fees compare.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Tue Apr 04, 2023 9:18 am
by zeroshiki
Well for example, the number 1 fund on their site is this:
https://gllt.morningstar.com/smbctbfund ... geId=ja-JP
Which is an active fund of 20-40 US stocks that's actively managed. The buy-in ranges from 2.75% to 1.10% and the management fee is 1.98%
Unless this guy has magic powers to beat the market by more than 2% every year, I'd stay far away.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Tue Apr 04, 2023 9:33 am
by ToushiTime
Prestia also sell index funds such as the Nissay Asset Management's "Index Fund NY Dow 30" which has a 3.30% purchasing charge on P7 of this
https://www.smbctb.co.jp/investment/mut ... _NKNYD.pdf
Novice here.
I guess that is what you mean by "buy-in".
Do Rakuten and SBI charge that fee?
A similar fund on Rakuten seems to have no fees other than what the fund itself charges.
https://member.rakuten-sec.co.jp/app/in ... 90C000DVP2
Am I misunderstanding something?
Prestia are charging an extra 3.30%, that the online brokerages don't, for just a passive index fund?
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Tue Apr 04, 2023 10:15 am
by TokyoBoglehead
ToushiTime wrote: ↑Tue Apr 04, 2023 9:33 am
Prestia also sell index funds such as the Nissay Asset Management's "Index Fund NY Dow 30" which has a 3.30% purchasing charge on P7 of this
https://www.smbctb.co.jp/investment/mut ... _NKNYD.pdf
Novice here.
I guess that is what you mean by "buy-in".
Do Rakuten and SBI charge that fee?
A similar fund on Rakuten seems to have no fees other than what the fund itself charges.
https://member.rakuten-sec.co.jp/app/in ... 90C000DVP2
Am I misunderstanding something?
Prestia are charging an extra 3.30%, that the online brokerages don't, for just a passive index fund?
Funds typically have two main ways of leveling fees.
Load fee - charge for buying
Yearly fee - charge for the work of managing the fund.
In 2023 no human should be paying a load fee and yearly fees should be under .2%, preferably lower.
Low cost brokers have no salesmen, and the fees are transparent.
Not so at the bank.
(Cliff Notes: Open a brokerage account with SBI, Rakuten etc. Pay attention to all fees).
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Tue Apr 04, 2023 12:49 pm
by beanhead
ToushiTime wrote: ↑Tue Apr 04, 2023 8:56 am
Hi, I'm not sure if I should post this in the stock investing forum, but does anyone know about buying mutual funds from Prestia / SMBC Trust Bank?
Those funds look like the kind that people who are not on this forum would buy. (Better than not investing, but...)
If you are here, and read what is advised, you should not be considering this.
NO-LOAD funds are the ones you want.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Wed Apr 05, 2023 12:42 pm
by ToushiTime
Yes, I already have SBI and Rakuten accounts.
I was just curious what Prestia was offering me and was surprised by that 3.30% load fee.
I guess that is how the brick-and-mortar banks have to cover their costs.
Thanks, but no thanks, Prestia.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Wed Apr 05, 2023 12:57 pm
by Moneymatters
ToushiTime wrote: ↑Wed Apr 05, 2023 12:42 pm
Yes, I already have SBI and Rakuten accounts.
I was just curious what Prestia was offering me and was surprised by that 3.30% load fee.
I guess that is how the brick-and-mortar banks have to cover their costs.
Thanks, but no thanks, Prestia.
Look at the calc on Page 3. It’s not 3.3% of the amount you want to invest. It’s more like 31,945 yen if you wanted to invest 1,000,000.
I think. Maths isn’t my strong suit.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Wed Apr 05, 2023 1:13 pm
by ToushiTime
I can't find the calculation on P3 of this, which is the fund I mentioned above.
https://www.smbctb.co.jp/investment/mut ... _NKNYD.pdf
P7 says you pay up to 3.3% of the NAV at time of purchase.
I'm not sure where you get 31,945, and it may be correct, but that would be 3.2% of 1,000,000, so not far off 3.3%.
Either way, that rate is far too high.
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Wed Apr 05, 2023 7:22 pm
by Moneymatters
ToushiTime wrote: ↑Wed Apr 05, 2023 1:13 pm
I can't find the calculation on P3 of this, which is the fund I mentioned above.
https://www.smbctb.co.jp/investment/mut ... _NKNYD.pdf
P7 says you pay up to 3.3% of the NAV at time of purchase.
I'm not sure where you get 31,945, and it may be correct, but that would be 3.2% of 1,000,000, so not far off 3.3%.
Either way, that rate is far too high.
Well. I did say maths it’s not my strong suit. Sorry for wasting your time. It is indeed about 3.3%.
A.I. could replace me in a heartbeat..
Re: Prestia / SMBC Trust: buying mutual funds
Posted: Thu Apr 06, 2023 12:00 am
by ToushiTime
Ha ha, no problem.
I am embarrassed sometimes at the arithmetic I find myself doing on a calculator.