In 2024, the overhaul of the Nippon Individual Savings Account (NISA) programme introduced an indefinite tax-free holding period, an increase to the annual investment limit, and a tax-free holding limit for account holders. These changes spurred a 30% jump in mutual fund assets and an increase in retail investors in Japan. For institutional investors, understanding retail behaviour begins with understanding who is investing and how. In this context, understanding the influence of changing NISA regulations is essential for monitoring the different actions undertaken by the Japanese retail investor population. In this literature review, we examine a paper that analyses the impact of demographic and socioeconomic characteristics on an individual’s investment choices in a NISA, and discuss further relevant datasets that can be used to monitor retail investor activity nationwide.

LITERATURE

We discuss the 2024 paper, ‘What determines investment in the Nippon Individual Savings Account? An investigation of Japan’s tax-exempt investment account’ by Takuya Katauke, Mostafa Saidur Rahim Khan and Yoshihiko Kadoya.