We met a friend of ours, P, for lunch at a Japanese restaurant he recommended. Good choice, the food was fresh and the location convenient for all. P said he bought a small apartment in the Ōta region of Tokyo, which is southwest of Tokyo towards Yokohama. So jealous!! I wonder if we can rent it from him for short visits.
We talked about current affairs, Brexit, property, where we like travelling to in Japan, and since he is a branch manager of a local bank, what investment products are good right now. He stayed on the conservative side, telling us about guarantee funds, life insurance based products, and mortgage funds. Have to do some reading on mortgage funds, not as familiar as I would like. I do know that they are supposed to be relatively low risk and generate returns a bit better than money market funds. They’re supposed to be more resistant to interest rate fluctuations–when interest rates are low, income from mortgages are low but underlying equities do well; when interest rates are high, equity markets tend to correct but mortgage funds have higher payments supporting it.
Red flags to watch out for in mortgage funds: where it invests, the type of underlying loans, entrance fee, exit fee, management fee, whether it pays all dividends or partial dividends.
My risk appetite is higher than this although I try to take a balanced approach. Anyway I should take a look at my investments, seeing how volatile the market has been this week. I’m not going to panic sell, because I’m not in need of any of those funds. But it may be a good opportunity to find some bargains.