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# How often do Japanese mutual funds raise fees?

In the current market environment, it seems that the prevailing trend among mutual funds is to reduce fees. However, when considering my long-term investment strategy, particularly in relation to Nippon Individual Savings Accounts (NISA), I can’t help but wonder about the frequency with which Japanese mutual funds actually raise their fees.

If a fund were to increase its fees, I would be left with a difficult decision to make. I could either accept the higher fees, thereby potentially eating into my returns, or I could choose to sell the fund and bid farewell to a portion of the tax-free benefits offered by NISA. It’s worth noting that these benefits do not reset or replenish once a fund is sold.

As far as I am aware, there don’t seem to be any explicit restrictions in place preventing mutual funds in Japan from raising their fees for existing investors. This raises concerns about the impact such fee hikes could have on investors’ overall returns and investment strategies.

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1 Comment

  • Garystri

    I don’t think your understanding of the new Nisa is correct.

    Your allowance is based on purchase price not value. So if you buy 10 yen and it rises to 20 yen and sell the 20 yen, you get 10 back. This mean you can just sell and rebuy something else. You will have a yearly limit though so you can’t move everything at once.

    From Google search.

    簿価残高方式とは、株式や投資信託などを購入したときの買値で非課税投資枠が管理されること。つまり、購入した株式や投資信託での利益は加味されず、あくまで買値だけで最高1800万円まで活用できるのだ。

    また、100万円で購入した投資信託が200万円に値上がりした際に売却した場合、買値の100万円分の枠が空くことになる。この100万円分は、翌年以降に非課税投資枠として再利用できるのが、新しいNISAのメリットといえる。