Criticizing Mutual Funds! They don’t grow much and you don’t learn anything about investing lol

Hello, I’m Mami Hirota, the more you read, the more
addicted you get🖤

I’ve been in the world of investing since 2007 and
I’ve experienced various types of management,
including long-term, medium-term, and short-term💰

The thing I want to criticize this time is

mutual funds!!!

Honestly, mutual funds are
just boring lol🤣

They don’t grow much,
you don’t learn anything about investing,
and they’re meant to be left alone anyway!!!

By the way, I myself
also manage mutual funds in my NISA.

So, this time too,
I’m not criticizing a product
that I’ve never used before🤣

In my own management,
I feel like it grows by about 4-5%
per year on average.

Depending on the situation, there are years
where it grows much more.

So, they are by no means bad.

Actually, I am
the type who would rather
put at least some money into investments than just keep it in savings 💰

So, what is it that I don’t like about them!!!

Well, it’s that

there are people who don’t really understand
what they should expect from mutual funds!!!

This time, I’m going to
write all the bad things I can think of about mutual funds lol

Don’t mutual funds not really grow that much? lol

Mutual funds are
actually quite convenient
as a way to grow assets over the long term.

There are many different products,
you can start with a small amount,
and you can even set up automatic contributions.

But still

I want to increase my monthly income starting next month!

I want to be able to earn money quickly!

To study investing,
start with mutual funds!

If someone who says that chooses a mutual fund,

No, no!!! 🤣

is what I would say.

In the first place, mutual funds
have different investment policies depending on the product,

but what I am talking about is
the type of mutual fund that
grows assets through long-term accumulation.

Basically, this is something
that takes years or even decades
to grow your money, right?

Of course, if the market is good,
it can increase significantly in a short period,
and conversely, it can also decrease.

But the purpose is fundamentally different from
steadily increasing your monthly income,
isn’t it?🤔

For example, even if you invest 1 million yen and
it hypothetically grows by 5% per year

the increase is only 50,000 yen per year

Of course, if the principal is large,
the amount will change,
and there is also the effect of compound interest.

However

do you want to increase your monthly income,
or do you want to increase your future assets?

I think there are quite a few people
who confuse these two.

Even though mutual funds are excellent products,
they are not
magic tools that solve everything lol

Are mutual funds good for learning about investing?

This is also what I think about it🧠

Buy mutual funds,
set up a savings plan,
and then just leave them alone.

Brain-dead style!

No matter what happens, keep it brain-dead!!

Of course, there are parts where you can learn,
like researching products
or thinking about asset allocation.

But

if you want to develop the ability to analyze the market yourself
and make trading decisions,
just having a savings plan
won’t build those skills.

(Brain-dead = because you’re not using your head)

I love FX,
and I still do scalping even now.

(Scalping is trading that lasts from a few seconds
to a few minutes.

The profit margins and losses are small,
and if you focus on the number of trades,
there’s no stress from holding positions overnight.

However,
if someone who hasn’t reached enlightenment does it,

your emotions will fluctuate too much,
and it becomes gambling lol

There are countless ways to do FX,
and the rules change depending on the holding time,
so you can choose what suits you)

Look at the charts yourself and
think about where to buy and sell.

If things don’t go as planned,
analyze what went wrong.

Adjust your judgment and
apply it to your next trade.

This repetition is
the real thrill of investing 🤣

Because I believe that investing
is not just about money,
but also about growing your own mind.

But with mutual fund accumulation,
you don’t really use that part.

In fact, the convenience lies in
the fact that you don’t have to use it.

Buying mutual funds and
improving your investment judgment
are two different things!!!

In fact, it won’t help you
learn anything at all!!!

Of course, you don’t have to
do all the trading yourself, and
there are people who don’t want to
spend that much time on investing, right??

That is precisely why

what is your purpose for investing

this is what is important!!!

It is best to just forget about mutual funds