The new NISA will begin next year.
Compared to the previous NISA, the new NISA is much easier to use.
The new NISA will be much easier to use than the previous NISA. The maximum purchase amount has also been tripled, from 6 million yen to 18 million yen, and it is now possible to purchase stocks and bonds, which were previously not eligible.
NISA is a system under which capital gains on mutual funds, stocks, and bonds purchased are not taxed (previously, 20% of capital gains were taxed), helping individuals build future financial assets by investing.
For example, if a mutual fund purchased for 5 million yen rises in value and is sold for 6 million yen, 20% of the 1 million yen, or 200,000 yen, is taken away for taxes, leaving the investor with only 5.8 million yen in his/her pocket.
However, whether mutual funds, stocks, or bonds, there is a risk that the price will fall below the point of purchase. However, index investments, for example, are said to be less risky if managed over the long term.
When I was young, interest on bank and postal savings accounts was about 5%, but now even regular interest rates are only 0.002%. 1 million yen deposited in a bank account will only amount to 20 yen per year. At the current inflation rate of 4%, bank deposits will diminish by 4% every year. One million yen today will be worth 960,000 yen next year. It is like paying 40,000 yen to the bank.
It was seven years ago that I bought my first mutual fund when I realized that my money would decrease rather than increase if I deposited it in a bank.
At that time, I did not know what a taxable account and a tax-exempt account were, so I opened a special account with Saison Investment Trust, which sells investment trusts for global investments, and started accumulating 30,000 yen per month.
After that, as I gradually learned more about the tax-exempt account (NISA), I switched to it and increased my monthly savings.
Over the past seven years, the Saison Global Balanced Fund that I purchased in mutual funds has brought me considerable gains. Some investors have taken issue with the high trust fee of 0.56%, but I was not too concerned about it.
However, under the new NISA starting next year, up to 18 million yen can be invested. If 18 million yen were invested as before, the annual trust fee would be approximately 100,000 yen.
Therefore, I decided to invest in mutual funds with low trust fees at SBI Securities from next year.
Although the actual purchase of mutual funds will not start until next year, let's consider which mutual funds to buy now.
