The new NISA, or Nippon Individual Savings Account, has sparked significant interest since its launch in January 2024, enabling individuals to invest tax-free and build assets over time. The system, designed to encourage personal savings and investments, includes two distinct frames: the Tsumitate Investment Frame and the Growth Investment Frame.
According to a recent survey, 39.7% of respondents have been using the NISA system since before 2023, while 17.2% started utilizing it in 2024 or later. This indicates a growing trend of individuals engaging with the investment framework, with 53.1% of users opting solely for the Tsumitate Investment Frame.
The Tsumitate Investment Frame allows for annual investments of up to 1.2 million yen, focusing on long-term accumulation through a limited selection of investment trusts. In contrast, the Growth Investment Frame permits a higher annual limit of 2.4 million yen and offers a broader range of investment options, including listed stocks and ETFs.
As of April 4, 2025, the utilization rate of the Tsumitate Investment Frame stands at 65.4%, while the Growth Investment Frame is at 32.3%, suggesting that many investors are still navigating their choices within the new system.
Financial experts highlight the benefits of both frames. The Tsumitate Investment Frame is praised for its simplicity and suitability for regular, smaller investments, making it ideal for those looking to build a nest egg over time. On the other hand, the Growth Investment Frame's flexibility allows investors to take advantage of market opportunities, potentially leading to higher returns.
Many users express a desire to recommend the NISA system to others, with approximately 70% indicating they would do so. This enthusiasm reflects the perceived advantages of the system, particularly its tax benefits and the potential for significant asset growth.
Investment strategies within the new NISA can vary widely. For instance, investors can utilize the Tsumitate Investment Frame for consistent, smaller investments while leveraging the Growth Investment Frame for more opportunistic purchases, such as individual stocks or ETFs during market dips.
Furthermore, the system allows for the accumulation of investment points, which can enhance the overall investment experience. For example, Rakuten Securities offers point redemption rates ranging from 0.5% to 2%, while SBI Securities provides rates from 0% to 3%, incentivizing users to engage more actively with their investments.
As the NISA system continues to evolve, experts advise potential investors to educate themselves about the different frames and their respective benefits. The ability to diversify investments and maximize returns through the Growth Investment Frame, combined with the steady accumulation offered by the Tsumitate Investment Frame, presents a compelling case for both new and seasoned investors.
In summary, the new NISA system is not just a financial tool; it represents a shift in how individuals approach personal finance and investment in Japan. With the right strategies and a clear understanding of the options available, investors can effectively utilize the NISA to enhance their financial future.
