新NISAの仕組みを徹底解説！非課税投資で資産形成を加速Understanding the New NISA System: Your Guide to Tax-Advantaged Investment in Japan

What is the New NISA? Japan's Evolved Tax-Exempt Investment System

In January 2024, Japan launched the "New NISA" (Nippon Individual Savings Account), a groundbreaking tax-advantaged investment scheme poised to revolutionize the country's investment landscape. This system is designed to support individual asset building by making investment gains (dividends and capital gains) tax-exempt. While a NISA system existed previously, the New NISA represents a significant enhancement, featuring expanded tax-exempt investment limits, a permanent tax-exempt holding period, and a permanent institutional framework, making it a more powerful tool for wealth creation.

For those who are interested in investing but find taxes complex, or are unsure which system to use, the New NISA offers a straightforward and highly beneficial option. This article will thoroughly explain the fundamental mechanisms of the New NISA and how to best utilize it, supporting you in your asset-building journey.

Evolution from the Old NISA: Key Changes and Advantages

The New NISA has been improved in many aspects compared to the old NISA (Tsumitate NISA and General NISA). Understanding the main changes and the resulting benefits is key to maximizing the new system's potential.

1. Substantial Expansion of Tax-Exempt Investment Limits

Under the old NISA, limits were set at 400,000 yen annually for Tsumitate NISA and 1.2 million yen annually for General NISA. The New NISA significantly increases the annual investment limits to 1.2 million yen for the "Tsumitate Investment Framework" and 2.4 million yen for the "Growth Investment Framework," allowing for a total annual investment of up to 3.6 million yen. Furthermore, the lifetime tax-exempt investment limit is set at 18 million yen (of which up to 12 million yen can be allocated to the Growth Investment Framework), enabling the management of a larger portfolio tax-free. A significant advantage is that this 18 million yen limit can be reused upon selling investments.

2. Permanent Tax-Exempt Holding Period

In the old NISA, the tax-exempt holding period was limited to a maximum of 20 years for Tsumitate NISA and 5 years for General NISA. The New NISA makes this tax-exempt holding period permanent, allowing investors to continue investing with a long-term perspective without worrying about deadlines. This enables investors to fully leverage the power of compound interest and build greater wealth over time.

3. Permanent System and Concurrent Use Possible

The old NISA was a temporary scheme, but the New NISA is designed as a permanent system. Additionally, while the old NISA required choosing between Tsumitate NISA and General NISA, the New NISA allows for the concurrent use of both the "Tsumitate Investment Framework" and the "Growth Investment Framework." This offers greater flexibility in investment strategies.

The "Tsumitate Investment Framework" and "Growth Investment Framework": Mastering the Two Tax-Exempt Categories

The New NISA comprises two distinct tax-exempt investment frameworks: the "Tsumitate Investment Framework" and the "Growth Investment Framework." It's crucial to understand their respective characteristics and utilize them according to your investment style.

1. Tsumitate Investment Framework (Annual 1.2 million yen, part of the 18 million yen lifetime limit)

• Eligible Products: Limited to investment trusts and ETFs (Exchange Traded Funds) that meet the Financial Services Agency's criteria, suitable for regular, diversified investing. Primarily focuses on index funds.
• Investment Method: Specializes in regular, systematic investment, allowing for automatic monthly purchases of a fixed amount.
• Benefits: Designed to promote long-term, systematic, and diversified investing, making it easier for investment beginners to build assets steadily while mitigating risk. It allows starting with small amounts and benefits significantly from dollar-cost averaging.

2. Growth Investment Framework (Annual 2.4 million yen, part of the 12 million yen within the lifetime limit)

• Eligible Products: Covers a broader range of products than the Tsumitate Investment Framework, including individual stocks, investment trusts, and ETFs. However, certain delisted/managed shares and leveraged investment trusts are excluded.
• Investment Method: Both lump-sum and systematic investment are possible, offering more flexible investment strategies.
• Benefits: Allows investment in a diverse range of products, such as individual stocks with high growth potential or specialized thematic investment trusts, potentially aiming for higher returns. However, this also entails a tendency for higher risk.

[Example Utilization]

• For Beginners: Start with systematic investment in index funds via the "Tsumitate Investment Framework." Once comfortable, gradually venture into individual stocks or thematic investment trusts using the "Growth Investment Framework."
• For Experienced Investors: Build a long-term core portfolio with the "Tsumitate Investment Framework" while pursuing higher returns through satellite investments in individual stocks or active funds via the "Growth Investment Framework."

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Eligible and Ineligible Investment Products under New NISA

To benefit from the tax advantages of the New NISA, it's essential to understand the eligible products defined by the system.

Eligible Investment Products (Examples)

• Tsumitate Investment Framework: Investment trusts and ETFs (primarily index-type) that meet FSA-specified requirements.
• Growth Investment Framework: Listed stocks (domestic and foreign), investment trusts, ETFs, REITs (Real Estate Investment Trusts), etc.

Ineligible Investment Products (Examples)

• FX (Foreign Exchange Margin Trading)
• CFD (Contracts for Difference)
• Derivative products such as futures and options trading
• Investments in precious metals like gold and platinum
• Unlisted stocks
• Stocks designated as delisted or managed issues
• Certain investment trusts in the Growth Investment Framework with trust periods of less than 20 years, monthly distribution types, or high leverage types.

Before starting your investment, always confirm the specific eligible products on the website of your chosen brokerage firm.

Strategies for Maximizing Your New NISA Benefits

Here are several strategies to fully leverage the New NISA and achieve efficient asset building.

1. Start Early and Commit to Long-Term Investing

Investment is a friend of time. Especially with the New NISA, which combines systematic investment with a permanent tax-exempt period, the earlier you start, the longer you can benefit from compounding, increasing the potential for significant asset growth. The key to success is to continue investing with a long-term perspective of several decades, rather than being swayed by short-term market fluctuations.

2. Thoroughly Diversify Your Investments

As the adage goes, "Don't put all your eggs in one basket." Diversifying your investments across multiple assets can reduce risk. By balancing regions (domestic, international), asset classes (stocks, bonds), and industries, you can avoid excessive reliance on the risks of a specific market or company.

3. Systematically Utilize Your Annual Investment Limit

Make effective use of the substantial annual investment limit of 3.6 million yen (1.2 million for Tsumitate, 2.4 million for Growth). Since the tax-exempt benefits reset each year, aim to utilize the full annual limit as much as possible. Consider monthly contributions or increased contributions during bonus months, within a comfortable range.

4. Regular Review and Rebalancing

Even with long-term investing, it's not enough to set it and forget it. Approximately once a year, review whether your portfolio deviates from your initial goals and if there have been any changes in your life plan or risk tolerance. If necessary, adjust your asset allocation (rebalance) to properly manage risk and aim for stable returns.

5. Compare Multiple Brokerage Accounts

While you can only open one New NISA account per person, choosing the right financial institution is crucial. Compare factors such as low fees, a wide range of available products, ease of use of tools, and the quality of information provided, and select a brokerage firm that suits your investment style.

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Conclusion: Build Your Future Wisely with New NISA

The New NISA system offers an unprecedented opportunity for individual investors in Japan to engage in asset building under highly favorable conditions. With expanded tax-exempt investment limits, a permanent tax-exempt holding period, and the ability to use two investment frameworks concurrently, investors of all levels, from beginners to experienced individuals, can now easily formulate strategies tailored to their goals.

However, it is crucial to remember that all investments inherently carry risks. It is important to understand the mechanisms explained in this article and to start investing systematically, taking into account your own life plan and risk tolerance. If you are unsure, consulting with a trusted financial planner or expert is also a valid option.

By maximizing the benefits of the New NISA, you can wisely and steadily build your assets for the future.