Insights from Investment Pros on Orcan and Another Key Trust to Consider

If you want to reduce risk, it’s conventional wisdom to not only invest in stocks but also diversify into assets with different price movements such as bonds and REITs. However, for this discussion, we’ll focus on investing in “stocks” and explore strategies accordingly.

• Considering currency and regional diversification, you might think about “Japanese equity index funds” and “excluding U.S. equity index funds.”

As mentioned earlier, Orcan has a small percentage allocated to Japanese stocks and is heavily weighted towards U.S. stocks. Additionally, foreign stocks are purchased in their respective currencies, which increases exposure to exchange rate fluctuations.

Therefore, if you’re aiming for asset growth while considering currency and regional diversification, investing in a Japanese equity index fund would be a viable option.

• If you’re inclined to take on more aggressive risks, consider investing in a “U.S. equity index fund.”

On the other hand, some individuals may wish to take on more risk than Orcan offers. In such cases, alongside Orcan, investing in a U.S. equity index fund could be a strategy to consider.

• If you’re aiming for capital gains and dividends, consider investing in a “high dividend yield equity fund.”

If you want to increase resilience against market downturns or aim for capital gains and dividend income, investing in a “high dividend yield equity fund” alongside Orcan could be a strategy worth considering.

By investing in a high dividend yield equity fund through the new NISA (Nippon Individual Savings Account), you can receive dividend income tax-free for your lifetime.

However, if it aligns with your risk tolerance, investing solely in Orcan should pose no issues. On the other hand, considering Orcan’s characteristics, risk-return profile, and whether you want to hedge risks or take on more risk, combining it with other investments can also be intriguing.

In the premium version of “FRIDAYサブスク,” we provide detailed introductions, including specific names, of another investment trust that complements Orcan based on different goals and types you may be aiming for.

In the paid version, “Another Mutual Fund” is introduced [with real names]. If you are interested in the details, click here!