Are you not turning to the side that offers funds to the market, with a column published on Toyo Keizai ONLINE?
Good morning, this is Matsushita.
In yesterday's Nihon Keizai Shimbun, regarding monthly distribution-type investment trusts,
an article stated that they have recently been on a trend of reduced distributions.
A monthly distribution-type investment trust is
an investment trust where the payouts, resembling dividends in stock investment,
are paid every month, and it became popular with the elderly as a substitute for a pension
because of that.
Because of this image of safety, among investment trusts, sales have grown greatly,
and products have proliferated,
making it a very popular investment product.
However, a major problem is hidden in this.
That is, the monthly distributions that are paid are not necessarily paid from operating profits,
and in many cases, they are paid by depleting the principal invested.
And yesterday's article stated that the initial planned distributions
were reduced overall due to the deteriorating investment performance caused by the current low interest rates.
This was the gist.
To explain this fact clearly,
elderly people do not deeply understand its content,
and think that monthly distributions will be obtainable and will supplement their pension,
so they invest large sums in these funds,
the monthly distributions they receive are simply funds they themselves invested being withdrawn,
and toward redemption,
the principal is decreasing, without realizing it,
and when redemption comes, the principal has been greatly damaged,
and in the end, money has not increased.
(Of course, even with the distributions added, it may still be decreasing.)
And the originally planned distributions gradually decrease,
and it is not supposed to be this way.
This is what is happening in reality.
This is why it is extremely popular with the elderly,
with hundreds of products proliferating,
and collecting hundreds of billions of yen in funds,
which is astonishing.
Even individual investors with small amounts of capital understand that
with investment funds whose principal decreases every month,
it is difficult to continue earning profits,
and anyone with some experience can see it.
Investing the principal down every month is suicidal.
(This is important, so please read carefully and understand its meaning.)
Yet such investment products were extremely popular,
and at one time swept the investment trust market,
which is the fear of the investment market,
and it is, unsurprisingly, due to the users' ignorance.
Investment trusts are, for individuals, the easiest to access
and the largest market-sized financial product,
yet in this world, things like this being tolerated is
a sad and cruel reality.
If investors do not become somewhat smarter,
they will simply become entities that hand over their funds to the market.
Are you not one of those who hands over capital to the market?
This is repeated daily in this market,
so to protect and grow your funds,
please learn the necessary knowledge.
Makoto Investment School
is always teaching investors the knowledge they need.
Makoto Investment School Online FX Investment Skill Development Course is here.