Tsumitate Transition and funds becoming out of NISA scope

[Moneymatters]

OK. i've not looked into this closely so consider yourself warned.

Resona has information on what will happen next year if you currently have:

• Tsumitate set up. I should continue as current using new tsumitate allocation. no action needed.

• Regular NISA but making regular investments (like tsumitate). It should continue using the Growth Allocation. But check the fund is still in scope for the new NISA Growth area.

"wait wot? I thought all Funds were in scope of NISA" you cry.
https://www.resonabank.co.jp/kojin/nisa/seidokaisei/

in the "my first computer" pdf within that link there are QR code links for three Resona entities so you can check which of their offerings might be falling out of NISA growth Scope.

as i have no idea how to look up a QR code on a PC, here's an example for Okinawa Rokin showing some of the fund they offer that will fall out of scope..
https://www.okinawa-rokin.or.jp/userfil ... stment.pdf

I'm assuming all brokers will soon be making similar communications if not already...

I'm not smart enough to speculate about how they select which funds get booted out of NISA scope.
But that won't stop me.
It seems to me they worry (retired) people will just stick regular dividend paying funds into NISA to get that juicy tax free income so maybe want to curb such behaviour. Or someone is about to tell me when I'm wrong..

[Tkydon]

For Tsumitate, you can increase your monthly allocation if you so choose; The Annual Limit is going up from Y400k to Y1.2M, so if you are currently at the maximum, you could triple your monthly contribution and still be within the new maximum.

The Offerings depend entirely on what the particular Financial Institution is willing to offer for each type of NISA. You may have to change Financial Institutions if you wish to invest in some asset class that is not offered under the new system by your current Financial Institution.

Banks are unlikely to offer anything other than Mutual Funds and Real-Estate Investment Trusts (REITs - basically Real Estate Mutual Funds...) in either the Tsumitate Portion or the Growth Portion, and most likely from affiliated Asset Management companies.

Brokers would be able to offer Mutual Funds, ETFs, Equities, Bonds, REITs, and other asset classes IF they choose to do so.

You would need to check the proposed Line-Up for each NISA Administrator for each Portion of the NISA to see whether they match your requirements and objectives.

[zeroshiki]

I assume the tsumitate portion will be restricted to the current list of tsumitate that they have (so mostly mutual funds). No idea for the growth portion. In my ideal world, I'd like them to make restrict it to the same funds so we don't get the day traders abusing NISA.