The investment of investment trust savings using credit cards is attracting attention.

Investment trust reserve is an investment method to buy a financial product called a predetermined investment trust (hereinafter referred to as investment trust) once a month for a predetermined amount. Investment trusts, also called funds, are financial products in which investment specialists collect money from investors, invest in stocks and bonds, and return part of their investment profits to the investors.

Credit cards are a tool for buying things, so you can buy investment trusts.

For example, you only have to complete the procedure once, and you will be automatically paid 100 yen each month from your credit card, and you can buy an investment trust worth 100 yen. While this convenience is appealing to those who have never invested, it also has its drawbacks.

Basic knowledge

Introducing basic knowledge about investment trust accumulation using credit cards. It will be easier to understand if you think of this financial product as “credit card,” “investment trust,” and “funding.”

A way to make money, but there is a risk of losing

First of all, regarding investment trusts (investment trusts), this is one of the investments for individuals. An individual who buys an investment trust is called an individual investor.

Investing is a profitable method of buying a financial product with your own money and waiting for the price of the financial product to rise. Deposits and savings also generate interest even if only a little, so you can think of it as an investment that buys financial products and waits for price increases.

Investing has another important property. That is the risk of loss. The price of a financial product may drop, and if you sell the financial product at the stage of the price drop, you will lose. The same is true for investment trusts, where you can make money or lose money.

Investment trusts are similar to stock investments

There are various types of investment trusts, but here we will explain about stock investment trusts.

A stock investment trust is almost the same as a stock investment. Both stock investment and stock investment trusts are profitable methods of buying stocks of a company and waiting for price increases or dividends.

When investing in stocks, individual investors decide which stocks to buy at their own discretion, but when investing in investment trusts, investment specialists are asked to select stocks. However, each product of the investment trust is clearly stated as “In this investment trust, we are buying the stocks of companies A, B and C”, so individual investors should look at the contents and purchase the investment trust. You will choose.

Investment trusts can be bought by individual investors according to their own circumstances, such as “buy 10,000 yen” or “buy 10 million yen”.

If the investment of an investment specialist is successful, the individual investor who bought the investment trust will be paid money in the name of distribution or redemption. In addition, the price of investment trusts may rise, so if an individual investor sells the investment trust at that time, a profit on sale can be obtained.

If the investment of an investment trust fails or the price of an investment trust drops, the individual investor who bought the investment trust will lose money.

Investment trust reserves are like time deposits, but not deposits

Investment trust funding is a method of purchasing investment trusts using a funding method.

Investment trusts are purchased through a securities company. To buy an investment trust, individual investors need to open an account with a securities company and deposit cash there. Then, when buying an investment trust, an individual investor instructs the securities company to “buy an investment trust called A for 300,000 yen.” Then, the securities company purchases A investment trust for 300,000 yen in the name of an individual investor.

In the investment trust reserve, individual investors conclude a contract with a securities company, for example, to “purchase an investment trust called B for 30,000 yen each month.” Then, the securities company will mechanically buy B investment trusts for 30,000 yen each month. If a retail investor tells a brokerage firm that they don’t have to buy anymore, the brokerage firm will stop buying.

Please note that the form of investment trust reserves is similar to time deposits, but they are completely different.

Fixed deposits have a small amount of interest, but the principal is almost never reduced. However, in the case of investment trust reserves, the value of an investment trust bought for 30,000 yen may increase to 40,000 yen or decrease to 20,000 yen at a later date.

For example, if you save 30,000 yen each month, you will have bought 300,000 yen worth of investment trusts in 10 months, but the value may be 400,000 yen or 200,000 yen. Hmm. The profit or loss of a trust fund depends on the economy, corporate performance, political situation, world affairs, and so on.

Advantages and Disadvantages of Saving Investment Trusts with a Credit Card

This concludes the explanation of investment trust reserves.

Funding with a credit card is the payment of the money required to make an investment called investment trust with a credit card. Alternatively, it can be said that you buy a financial product called an investment trust reserve with a credit card. Let’s consider its advantages and disadvantages.

The threshold for investment is lowered and you can get points

There are three benefits.

• People who use credit cards for daily shopping will find it easier to manage their spending.
• You can save investment trusts from 100 yen a month
• Credit card points can be accumulated and considered as an investment profit

For those who have never invested, investing may seem like a high threshold. However, both the government (Financial Agency) and the Bank of Japan are promoting investment in the people (* 1, 2). Investing is a valuable way to increase your wealth outside of labor.

However, there are risks associated with investing, so it is very important to be able to start investing trusts from a very small amount in an easy way. It will be easier for you to take on the challenge of investing and it will be a practice for investing.

If you save 100 yen a month for an investment trust, even if the value is halved for 5 consecutive years, you will only lose 3,000 yen (= 100 yen a month x 12 months x 5 years / 2).

Buying an investment trust reserve with a credit card is the same as having a credit card company make a normal purchase, so points are given to the user.

The points can be regarded as the profit of investment for the user because they can be regarded as the monetary profit obtained by buying the investment trust reserve. The monetary value of points for small investments is not that great, but if you can easily get the return on your investment, you’re glad you started investing.

※1：https://www.fsa.go.jp/ordinary/investment.html
※2：https://www.shiruporuto.jp/public/document/container/hyakka/part2/toshin/

Is it a little troublesome?

There are other disadvantages to investing trust reserves besides the risks. It’s a complicated procedure. Some people may find it annoying.

To start investing trusts, you need to select a securities company, create an account there, transfer money from your bank account to that securities company account, select a good investment trust funded product, and purchase it. I have.

Furthermore, when the profit of the investment trust reserve is generated and it is monetized, the money in the securities company account must be transferred to the bank account and withdrawn from the bank account. Also, if the profit is large, you will need to file a tax return. In addition, if you want to buy an investment trust reserve with a credit card, you have to contract with a credit card company, of course.

Securities companies and card companies team up to provide investment trust reserve services

Several companies offer a service that allows you to buy investment trust reserves with a credit card. Here, we will introduce two of these services.

SBI SECURITIES x Sumitomo Mitsui Banking Corporation

SBI SECURITIES, a securities company, and Sumitomo Mitsui Card, a card company, will start an investment trust fund-raising service using credit cards in June 2021 (* 3).

The reserve amount is 100 to 50,000 yen every month. The application for the reserve setting will be closed by the 10th of every month, and the investment trust reserve product will be purchased for the set amount on the 1st of the following month. To use this service, you need to open an account with SBI SECURITIES and hold a credit card of Sumitomo Mitsui Card. The point redemption rate is 0.5{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7}.

※3：https://prtimes.jp/main/html/rd/p/000000441.000007957.html

Rakuten is completed within the group

Rakuten has both a securities company and a credit card company within the group, so investment trust savings using credit cards will be completed within the group (* 4). People who make heavy use of Rakuten Cards and Rakuten’s online shopping will be familiar with them.

Rakuten’s reserve setting amount is 100 to 50,000 yen every month. The point return rate is 1{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} (= 1 point for every 100 yen).

※4：https://www.rakuten-sec.co.jp/web/rfund/guide/creditcard.html#skip01

Summary-I think it’s good for investment debut

There is another disadvantage to investing trusts using credit cards. That is, you can start investing for a very small amount. Ultra-small investment has both advantages and disadvantages.

If you invest 100 yen each month in the investment trust reserve, the principal will be 12,000 yen even if you invest for 10 years. Even if this money is doubled, it will only be 24,000 yen, and the profit will be 12,000 yen (= 24,000 yen-12,000 yen). It’s great to “double the principal” in the investment world, but if you have a 10-year profit of 12,000 yen, you won’t be so happy.

The “umami” and “pain” of an investment increase as the investment amount increases.

Credit card investment trust savings may be suitable for those who are about to make their investment debut. Why don’t you experience the gains and losses with this, train to collect investment information, and gradually increase the investment amount when you get the point.