Interest in asset building has increased due to changes in lifestyles such as remote work during the corona crisis. Especially among young people in their 20s and 30s, the number of Tsumitate NISA accounts has increased rapidly.Under such circumstances, it can be said that Tsumitate NISA is the definitive edition“Select the latest Tsumitate NISA from these 9 books”(Written by Haruhiro Nakano, Diamond Publishing) will be released on March 16.In this series, for those who want to use Tsumitate NISA for long-term investment and asset building, we will publish excerpts from the book on how to choose and buy a Tsumitate NISA without failure.Even those who are new to investing and wondering “What is Tsumitate NISA?” We will explain the basics in an easy-to-understand manner, so please feel free to contact us.
Even with a difference of 1% per year, if it is operated for 30 years,
There is a difference of 810,000 yen or more in total assets!
In the first place, when investing for the long term using mutual funds, a high management fee rate has a large impact on the final take-home income.
Let’s make a simple comparison (see chart below).
For example, let’s say you have two mutual funds with an expected return of 5% per annum. Let’s say that mutual fund (A) has a 2% management fee rate and mutual fund (B) has a 1% management fee rate.
And we will operate the 1 million yen on hand for 30 years. In this case, if you calculate how much each person’s total assets will be following tax following 30 years, it will be as follows.
Investment trust (A) = 2,427,262 yen
Investment trust (B) = 3,243,398 yen
how is it.
Even though there is only a slight difference of 1% per year, if you continue to operate for 30 years, there will be a difference of more than 810,000 yen in total assets.It is.
In order to improve the return by 1% in operation,
bloody effort required
There are people who often say the following regarding the high and low of the operation management cost rate.
“Even if the investment management fee rate is 2% a year, if the investment is good and you can get a return of 30% a year, there is no need to be blinded by a difference of regarding 1%.”
Indeed, if you can reliably get a return of 30% a year, a 1% difference may not matter much.
However, there is no guarantee that you will always get a 30% return over the long term. A fund that yields a return of 30% in one year can be considered to be operating at a very high risk. In some cases, it can be as low as -30%. Can I confidently say that a 1% difference is not a big deal even when returns drop significantly?
If you are aiming for a return of regarding 6% per year, which is the goal of this series, a 1% difference in operation and management costs will be very large.
This is what many fund managers sayIn order to improve returns by 1%, it is already necessary to make bloody effortsThat’s what it means.
However, reducing costs is something anyone can do if they check when choosing an investment trust.
That is why when choosing an investment trust, it is important to carefully compare the investment management costs and choose an investment trust with an appropriate level according to the product content.
Chairman and CEO of Saison Asset Management
Vice Chairman, The Investment Trusts Association, Japan; Director, The Saison Foundation
Graduated from Meiji University School of Commerce in 1987 and joined Credit Saison. In 2006, he founded Saison Asset Management. Current position since June 2020. Propose long-term investment to steadily increase assets. He has managed two internationally distributed investment trusts for over 15 years and supports the long-term asset formation of individuals. He has won the “R&I Fund Award” Grand Prize for objective quantitative evaluation for 9 years in a row. The number of accounts opened by 160,000 people exceeded 500 billion yen in assets under custody.
in major publications“Select the latest investment trust from these 9”“Buy an investment trust like this”(Diamond Co., Ltd.) and many others.
