Focusing on B, who stopped regular investing during the market crash, this analysis examines why the difference in investment gains after 2 years reached approximately ¥300,000, using the Nikkei 225's performance and the experiences of 3 participants.
NISA Dojo has recommended continuing regular investing even when markets decline. This analysis instead focuses on B, who did not sell on the day of the market crash but simply stopped regular investing. It compares 3 cases: A, who sold everything out of fear; B, who stopped making new purchases; and C, who continued investing. After 2 years, the difference in investment gains was approximately ¥300,000. The results showed that the impact was related not only to stopping contributions but also to missing the purchase opportunities.
For the analysis, the participants invested ¥30,000 per month in an investment trust tracking the Nikkei 225 from January 2024, and their account values after the major crash on 5 August were compared. The Nikkei 225 recovered after the crash, reaching nearly twice its previous level in approximately 2 years, but A sold all holdings, B stopped making new purchases, and C continued investing. One reason C increased both principal and investment gains was that C continued making additional purchases during the market decline.
The performance shown in Figure 2 indicates that the difference in investment gains between B and C was approximately ¥300,000. The analysis explains that the primary reason was that B missed 24 purchase installments. If additional purchases had been made during the crash, the number of investment trust units would have increased even with the same monthly contributions, potentially resulting in higher investment gains. Finally, the analysis suggests that combining monthly checks of price movements, automatic investing, and an annual review can be effective in creating a system that helps investors avoid stopping their contributions.