Can you build wealth through 'steady investing'?! (January 2020)

I started 'steady investing' in mutual funds around June 2003 (a career of over 15 years!), but I only started keeping detailed records from April 2006 onwards. The following graph shows the trajectory since I began keeping records.

The following graph shows the transition of (valuation / investment amount) - 1.

Thanks to this, the market valuation (pre-tax) is 2.02 times the total principal invested (2.04 times last month, 1.78 times the same period last year). I have maintained a valuation gain/loss (rate) of over 2 times.

If we set the investment principal at the end of April 2006 to 100, the market value at the end of January 2020 has reached 2,296 (previous month: 2,312, same period last year: 1,935).

Based on this,

to the opening question: 'Can you build wealth through steady investing?!'

Yes, you can build wealth!!!

is the answer. Note that mutual funds account for over 99% of my portfolio.

However, since the contents of those mutual funds are mostly stocks with high price volatility, the valuation is significantly damaged when stock prices fall.

I created a graph focusing on the last 5 years (from the end of February 2015 to the end of January 2020), similar to a mutual fund prospectus.

There have been 20 instances of negative returns. Since there are 60 data points, that means one-third were negative. The most recent 4 months have been positive consecutively.

This is the annual rate of return.

2020 started off with a negative return.

I calculated (net asset value / average acquisition price) - 1 for the funds I hold.

There is one fund that is negative, but I am not particularly worried about it.

As shown in the table, I have fully liquidated my emerging market stock index funds.

This is a graph showing the valuation gains (in monetary terms) for each fund.

The top 3 in terms of valuation gains (monetary amount) are

SMT Global Equity Index Open

Hifumi Fund

Saison Asset Management Master Fund

.

Please also take a look at the page below regarding my asset formation through investment trusts.

I also provide monthly updates on note. There is a magazine available.

In 2020, I will continue to invest steadily and at my own pace.