Which Rakuten funds are best for NISA?

[jaybee66]

Primarily, I’m interested in a long term safe fund for the bulk. Iiuc, “EMaxis slim all countries” rated #1 on the Rakuten site is the best choice? How about the “S&P 500” type fund instead?

Secondly, which fund would be good for shorter term, higher yield? I realize this would likely have higher risk, but I’d only invest what I could afford to lose.

Thanks so much

 

[judgeguilt]

@jaybee66 S&P500 is the index that tracks large US stocks. If you have faith in the US economy to continue like it has in the past 20 years, then buy this.

If you don't want to think, buy the all countries one.

If you want high short term yields then you probably want to look into the leveraged funds, but please don't bet the farm on these.

 

[jaybee66]

@judgeguilt I was just going off conventional wisdom and Buffet etc about the S&P 500. He was mentioning S&P 500 by default have a lot of overseas elements anyways. With these two funds on Rakuten, is the main difference the S&P performs better than “all country” overtime, but it’s just more volatile?

Can you give me a specific example of a good leveraged fund?

Thanks again

 

[saramae]

@jaybee66 With the new Nisa I went 100% in the 2 new funds they started. Because they give points just for holding them.

eMaxis slim are a no brainer if you want something with a good track record. If you dont care about points and be wants something more solid go for eMaxis slim you can't do wrong

https://www.rakuten-sec.co.jp/web/fund/smartphone/products/fund/detail/?ID=JP90C000Q2W2

https://www.rakuten-sec.co.jp/web/fund/smartphone/products/fund/detail/?ID=JP90C000Q2U6

 

[resjudicata]

@saramae These are also currently the lowest cost funds in the market for the allocations in question.

Who knows though if the hidden costs for these continue the trend or not. Consider that Rakuten has a wide assortment of financial services, they might be able to keep an edge.... Who knows, indeed.

 

[saramae]

@resjudicata They are there to compete against emaxis slim so I have some faith but yeah hopefully, gotta take a while until we know for real

 

[resjudicata]

@saramae Annual financial report basically, yeah. Their day to day NAV changes are pretty erratic, but that's what you'd expect from such a young fund anyway.

https://shintaro-money.com/rakuten-acwi/#eMAXIS_Slim-2

 

[jaybee66]

@resjudicata How much cheaper?

 

[resjudicata]

@jaybee66 0.01%-ish.

Negligible.

Like a few thousand yen on a lifetime of investing.

 

[jaybee66]

@resjudicata Thanks

 

[jaybee66]

@saramae The 2 you link offer points?

 

[saramae]

@jaybee66 Not much but yes.

0.017% or 0.028% of your holding per year

https://www.rakuten-sec.co.jp/smartphone/info/info20231027-06.html

 

[denningsjeff]

@saramae ¥612 per year if you invest the full ¥3.6m. Pretty poor.

The trouble with Rakuten is their point schemes only last as long as they need them to. I’m still quite bitter that they got rid of the SPU bonus for investing points. That was one of the main reasons I signed up with them over the competition.

 

[saramae]

@denningsjeff Yeah it's a small but I'll take it

 

[denningsjeff]

@saramae I don’t think there are many reasons not to. It seems similar to the eMaxis Slim one but very slightly cheaper.

 

[jaybee66]

@denningsjeff How much cheaper exactly?