[Latest as of November 2026] All Country and S&P 500 Rankings Slip! 4.3x Bull Japanese Stock Funds Surge in Popularity! Is a Mutual Fund with a 41% Distribution Yield Worth Buying?
Learning from popularity rankings: How mutual funds work and how to build assets without failing
In October 2026, there was a major shift in the best-selling mutual fund rankings.
Overtaking long-term investment staples like “All Country” and “S&P 500,” mutual funds that apply approximately 4.3x leverage to the price movements of Japanese stocks dominated the top spots.
Furthermore, a mutual fund with a yield of approximately 41.3%, calculated by dividing the past year’s distributions by the net asset value, is also attracting attention.
However, there is something we should consider here.
Are popular mutual funds truly suitable for asset building?
In this article, we will explain investor psychology, the dangers of leverage, how distributions work, the differences from NISA, and future investment decisions in a way that is easy for beginners to understand.
Table of Contents
1. Mutual Fund Rankings for October 2026
2. Why are 4.3x Bull Japanese Stock Funds popular?
3. The dangerous mechanism of 4.3x Bull funds
4. What is the 41.3% distribution yield “THE 5G”?
5. How much would you receive if you invested 1 million yen?
6. The difference between distributions and actual profit
7. Comparison of All Country, S&P 500, and THE 5G
8. Products you can and cannot buy with NISA
9. Is now the time to buy?
10. Investment rules for beginners to avoid failure
11. Asset building combining FX and NISA
12. Summary
1. October 2026 Mutual Fund Rankings
Let’s look at the monthly best-seller rankings for October 2026 at Monex Securities.
[1st Place]
Rakuten Japan Stock 4.3x Bull
Previous month: 2nd
[2nd Place]
SBI Japan Stock 4.3 Bull
Previous month: 5th
[3rd Place]
eMAXIS Slim Worldwide Equity (All Country)
Common name: All Country
Previous month: 1st
[4th Place]
eMAXIS Slim US Equity (S&P 500)
Previous month: 3rd
[5th Place]
Nikkei 225 No-Load Open
Previous month: 6th
[6th Place]
eMAXIS Slim Domestic Equity (Nikkei 225)
Previous month: 8th
[7th Place]
Invesco Global Selected Equity Open (Monthly Settlement Type)
Common name: World’s Best
Previous month: 4th
[9th Place]
Next Generation Communication Global Equity Strategy Fund (Expected Distribution Presentation Type)
Common name: THE 5G
Previous month: Outside the top 10
* 8th and 10th places are omitted as they are not listed in the original article.
Source: Monex, Inc., Finasee
https://fund.monex.co.jp/rankinglist#MonthlySales
3 things we can learn from the ranking
1. There are investors expecting a rebound in Japanese stocks
2. All Country and S&P 500 remain popular
3. There are also investors seeking high distributions
However, there are points to note.
Just because a ranking has gone up does not guarantee a future price increase.
The best-seller ranking shows past purchasing trends.
This is not a ranking of investment performance.
2. Why is the Japanese stock 4.3x bull fund popular?
In October 2026, Japanese stocks declined.
Let’s check the monthly returns introduced in the original article.
[Rakuten Japanese Stock 4.3x Bull]
-24.51%
[eMAXIS Slim Domestic Equity (Nikkei 225)]
-5.17%
[eMAXIS Slim Domestic Equity (TOPIX)]
-3.50%
In other words, the 4.3x bull fund fell significantly more than standard Japanese stock index funds.
Even so, why did it reach number one in the rankings?
A possible reason is,
“Now that it has fallen significantly, I want to buy it aiming for a rebound.”
This is the investor psychology at play.
For example, suppose an asset worth 1 million yen has become 750,000 yen.
Some investors think,
“Since it has fallen this much, it should go up soon.”
However, there is a pitfall here.
However, there is a pitfall here.
A significant drop is not the same as being undervalued.
If corporate earnings deteriorate, stock prices may fall even further.
3. The Dangerous Mechanism of 4.3x Bull Funds
To begin with, what is a 4.3x bull fund?
To explain it simply,
It is a mutual fund that aims for a daily price movement of approximately 4.3 times that of the Japanese stock market.
For example, if the Japanese stock market rises by 2% in one day,
the 4.3x bull fund aims for an increase of approximately 8.6% by simple calculation.
Conversely, if the Japanese stock market falls by 2%, it aims for a decline of approximately 8.6%.
If you invest 1 million yen
[If Japanese stocks rise by 3% in one day]
Standard index fund
1 million yen → approx. 1.03 million yen
4.3x bull fund
1 million yen → approx. 1,129,000 yen
[If Japanese stocks fall by 3% in one day]
Standard index fund
1 million yen → approx. 970,000 yen
4.3x bull fund
1 million yen → approx. 871,000 yen
*This is a simple calculation assuming perfect tracking of the index.
In other words, while large profits can be expected if it rises, losses will also be magnified if it falls.
Even more caution is needed for long-term holding
A 4.3x bull fund is not a product that simply multiplies the long-term rate of return by 4.3.
For example, suppose the index rises by 10% on the first day and falls by approximately 9.09% the next day.
The index returns to almost its original level.
However, if you calculate the 4.3x bull fund simply,
1 million yen
↓
Day 1: 1.43 million yen
↓
Day 2: Approximately 871,000 yen
This is the result.
Even if the index returns to almost its original level, a loss of approximately 130,000 yen remains.
This is due to the compounding effect of applying a multiplier to daily price movements.
A 4.3x bull fund is not a product for beginners to hold long-term without careful consideration.
4. What is the 41.3% distribution yield ‘THE 5G’?
Another fund that attracted attention this time is
‘Next Generation Communication Global Equity Strategy Fund (Expected Distribution Presentation Type)’
commonly known as ‘THE 5G’.
This mutual fund invests in global telecommunications technology and AI-related companies.
For example,
・Semiconductors
・Data centers
・Telecommunications infrastructure
・AI-related technologies
・IoT-related companies
and so on.
As of the end of September 2026, the main holdings included the following companies:
[Apple]
5.26%
[NVIDIA]
4.83%
[Amazon]
4.72%
[TSMC]
4.12%
It is characterized by investing in companies that possess the technology necessary for the spread of AI.
Past performance
As of the end of September 2026, the rate of return based on reinvested distributions was
[Past 6 months]
Plus 44.71%
[Past 1 year]
Plus 50.02%
[Past 3 years]
Plus 217.50%
was the result.
However, this is past performance.
It does not mean that the same performance will continue in the future.
In fact, according to the original article, the monthly return for October 2026 was minus 6.75%.
Even when investing in growth sectors, prices can drop significantly.
5. How much is the distribution if you invest 1 million yen?
This is the part of this article I want to focus on in particular.
Let’s check the figures for THE 5G as of the end of October 2026.
[Net Asset Value]
12,593 yen
[Cumulative distribution for the past 12 months]
5,200 yen
*Per 10,000 units, before tax
[Distribution yield]
Approximately 41.3%
The calculation method is,
5,200 yen ÷ 12,593 yen × 100
= approximately 41.3%
.
So, what happens if you invest 1 million yen?
Assuming the same distributions are paid as in the past 12 months,
[100,000 yen investment]
Approximately 41,300 yen per year
[500,000 yen investment]
Approximately 206,500 yen per year
[1 million yen investment]
Approximately 413,000 yen per year
[3 million yen investment]
Approximately 1,239,000 yen per year
is the calculated result.
However, this is not a figure that predicts future distributions.
Future distributions may be reduced or may not be paid at all.
And there is one most important thing.
Even if you receive 410,000 yen in distributions, it does not necessarily mean you have made a profit of 410,000 yen.
6. The difference between distributions and actual profit
The mechanism for mutual fund distributions is different from interest on bank deposits.
Distributions are paid from the assets held by the mutual fund.
Therefore, when a distribution is paid, the net asset value decreases by that amount.
Specific example
Suppose you invested 1 million yen.
After that, a distribution of 300,000 yen was paid.
However, if the valuation of the mutual fund becomes 700,000 yen,
Distribution received: 300,000 yen
Remaining mutual fund: 700,000 yen
Total: 1 million yen
is the result.
In other words, the profit is zero.
Just because you received 300,000 yen does not mean you have increased your wealth by 300,000 yen.
There are two types of distributions
1. Ordinary distribution
This is the portion that corresponds to profit for the investor.
In taxable accounts, it is generally subject to a 20.315% tax.
2. Principal repayment (special distribution)
This is a return of a portion of the principal you invested.
Since it is not profit, it is tax-free.
In other words, even if a high distribution is paid, a portion of it may be a refund of your own principal.
The number you should really look at
is the “total return.”
Total return is the investment performance combining capital gains and distributions.
For example,
Investment principal: 1 million yen
Current valuation: 800,000 yen
Distributions received: 300,000 yen
If so,
800,000 yen + 300,000 yen – 1 million yen
= 100,000 yen
The profit before considering taxes and fees is 100,000 yen.
When it comes to mutual funds, judge them not just by the size of the distributions, but by how much the total assets have grown.
7. Comparing All Country, S&P 500, and THE 5G
Here, we will organize the differences between each.
1. All Country
Official name:
eMAXIS Slim Worldwide Equity (All Country)
This is a product that invests broadly in the global stock market.
Its feature is the ability to diversify investments across countries around the world.
However, because the ratio of US stocks is high, it is also significantly affected by the US market.
It is a product that is easy to consider as the core of long-term asset formation.
② S&P 500
Official Name:
eMAXIS Slim US Equity (S&P 500)
Invests in approximately 500 major US companies.
Includes global companies such as Apple, Microsoft, and NVIDIA.
It is suitable for those who expect growth in the US economy.
On the other hand, there is a risk of concentration in the US.
③ THE 5G
Invests in global communication technology and AI-related companies, etc.
It is characterized by the ability to invest in specific growth sectors.
On the other hand, if the stock prices of related industries fall, there is a possibility of being significantly affected.
The fact that it is a monthly distribution type is also a point to note when considering long-term compound interest management.
④ 4.3x Bull
A product that aims for significant short-term gains in the Japanese stock market.
The price movement is extremely large, and it is not suitable as the core of long-term accumulation.
Investment experience and risk management become important.
8. Products you can and cannot buy with NISA
In NISA, not all mutual funds are available for purchase.
For example,
[All Country]
NISA eligible
[eMAXIS Slim S&P 500]
NISA eligible
[Rakuten Japanese Stock 4.3x Bull]
Not NISA eligible
[SBI Japanese Stock 4.3 Bull]
Not NISA eligible
[THE 5G (Expected Distribution Presentation Type)]
Not NISA eligible
are the statuses.
In the NISA growth investment quota, certain products such as monthly distribution types and high-leverage types are excluded.
Also, since there are different settlement types for THE 5G, it is important to check the official product name and eligibility category.
NISA is a system where taxes on profits are exempt.
However, this does not mean that the risk of the investment itself disappears.
9. Is now the time to buy?
So, as of November 2026, is it a good time to buy mutual funds?
To conclude,
You cannot judge the right time to buy based solely on popularity rankings.
What matters is your investment objective and your investment horizon.
Scenario 1: Stock prices rebound
This occurs if the performance of AI-related companies improves and stock prices rise.
Japanese stocks and THE 5G may also potentially recover.
However, it is difficult to accurately predict the timing or the extent of a rebound.
Scenario 2: Stock prices fluctuate
This is a market that goes up and down.
In such situations, products like 4.3x bull funds may be at a disadvantage due to the daily compounding effect.
Scenario 3: The decline continues
This occurs if stock prices fall further due to deteriorating corporate earnings, rising interest rates, or waning expectations for AI-related stocks.
Especially with high-leverage products, losses can become significant.
How should a beginner think about this?
If your goal is long-term wealth accumulation, you do not need to focus solely on timing the market bottom.
For example, there is the method of investing a fixed amount every month.
This is a mechanism where you buy fewer units when prices are high and more units when prices are low.
This is called dollar-cost averaging.
However, this is not a method that guarantees a profit.
For products that decline in value over the long term, even systematic investment will result in losses.
10. Investment rules for beginners to avoid failure
Before buying a mutual fund, let’s check the following.
1. What are you investing in?
2. Why are you buying that product?
3. How many years do you plan to hold it?
4. How much loss can you tolerate?
5. Do you understand the difference between distributions and profits?
6. How much are the fees, such as the trust fee?
7. Does the investment overlap with other products you hold?
8. Have you secured your living expenses and emergency funds?
9. When will you sell?
10. Are you recording your investment performance?
The last point, recording, is especially important.
For example,
“Why did I buy it?”
“Under what conditions will I sell?”
“What was the result?”
“Would I make the same decision next time?”
Record these.
Even if you make a large profit once, you need to distinguish whether it was a coincidence or a decision with reproducibility.
In investing, it is important not only to check how much you have earned, but also whether the quality of your decision-making is improving.
11. Asset formation combining FX and NISA
I consider FX and NISA to have different roles.
In FX, I trade based on established rules.
In NISA, I aim for long-term asset formation.
This is the approach of combining the two.
For example,
Lock in profits with FX
↓
Secure funds for taxes and living expenses
↓
Move a portion of the surplus funds to NISA
↓
Invest long-term in All Country or S&P 500, etc.
This is the flow.
However, losses can occur in FX.
You should not base your living expenses or NISA contribution amounts on FX profits; sound money management is essential.
And what is important for both FX and long-term investing is,
making decisions based on systems, not emotions.
Instead of being swayed by short-term gains, let’s build a system where assets grow over the long term.
For those who want to learn about FX
[YouTube | FX Trade Master Chiharu]
[FX Noon 12:00 Strategy | Trading Materials]
12. Summary | Instead of buying popular products, build a system that grows your assets
From this mutual fund ranking, we can see the various ways investors are thinking.
Those aiming for a rebound in Japanese stocks.
Those expecting growth in AI-related companies.
Those seeking high distribution yields.
Those continuing long-term investments in All Country or S&P 500 funds.
Which one is correct depends on your investment goals and risk tolerance.
However, there is something you must not forget.
Being popular is different from being right for you.
Buying because the distribution is high.
Buying because it dropped significantly.
Buying because it is ranked number one.
That alone does not necessarily lead to long-term asset formation.
What is important is:
Why are you investing?
What kind of assets do you want to build?
How much risk can you take?
And what kind of system allows you to keep going?
That is what it means.
Investing is not a game of winning this month’s popularity rankings.
It is a means to enrich your life 10 or 20 years from now.
Instead of chasing short-term profits, build a system where your assets grow.
Having that perspective is perhaps the first step toward long-term wealth creation.
Reference Materials
Monex, Inc. | Mutual Fund Rankings
https://fund.monex.co.jp/rankinglist#MonthlySales
Financial Services Agency | NISA Special Website
https://www.fsa.go.jp/policy/nisa2/
*This article is based on information as of November 9, 2026, and the provided Finasee article. The figures are as of the time the article was written and do not guarantee future investment performance. Please make investment decisions after checking the latest prospectus and other documents.
Hashtags
#MutualFunds #AllCountry #SP500 #NISA #NewNISA #WealthCreation #JapaneseStocks #Nikkei225 #RakutenJapanStock4.3xBull #THE5G #Distributions #HighDividend #InvestmentBeginner #LongTermInvesting #FX #MoneyStudy