Various introductory books on asset building have emphasized for years that what is known as dollar cost averaging investment in the United States — utilizing such tools as investment trusts linked to stock price indexes with low fees — realize higher returns in the long run. In Japan, however, such an asset building method has yet to take root. Why?

In 2018, the Tsumitate (accumulation) NISA (Nippon individual savings account) was introduced at the initiative of the Financial Services Agency. It is a fixed amount investment plan with the tax on investment earnings exempted for 20 years. Investment trust products used in the plan are mainly low-fee instruments linked to domestic or foreign stock price indexes. Fortunately, a growing number of young and middle-aged people have begun to open the accounts. As of the end of June, the number of Tsumitate NISA accounts reached 1.47 million. This is a promising development.

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