Which funds, stocks, ETFs, and REITs qualify under each allowance, what is excluded, and how to confirm exact eligibility.
The recurring allowance is limited to FSA-listed long-term diversified funds and qualifying ETFs; the growth allowance adds eligible listed shares, REITs, ETFs, and funds — but deposits, ordinary bonds, margin, and certain fund structures are excluded. Confirm eligibility by exact fund name at the FSA list and your broker.
The recurring-investment allowance deliberately restricts choice to encourage low-cost, long-term, diversified investing. Eligible products are the investment trusts and qualifying ETFs the FSA has screened onto its published list — broadly, funds with reasonable costs, wide diversification, and long-term structures. As of the FSA’s recent classification the eligible universe held hundreds of funds and a small number of qualifying ETFs, with low average expense ratios among index products.
Because the list is curated for suitability, a beginner can reasonably pick a single broad global-equity index fund from it and be confident it meets basic long-term standards. But the list changes, so check the current version.
The growth-investment allowance opens the door to individual eligible listed shares, REITs, ETFs, and a broader set of investment trusts. This is where you would buy a specific Japanese or (broker-permitting) foreign stock, a J-REIT, or a fund not on the recurring list.
Several things are excluded to keep NISA aligned with long-term investing: designated supervisory or liquidation stocks, investment trusts with terms shorter than 20 years, monthly-distribution funds, and certain derivative-heavy funds. Across both allowances, ordinary deposits, government and corporate bonds, and margin purchases are outside NISA entirely.
Eligibility is specific and can differ by broker, so never assume. Two products with similar names can differ in eligibility, and a fund can be offered by one broker in NISA but not another. NISA eligibility for a foreign ETF is not automatic just because it is exchange-listed.
To confirm, match the exact fund name and share class against the FSA’s current list, then check that your chosen broker actually offers it inside the intended allowance. If you are a US taxpayer, add a separate step: a Japanese fund’s Japanese eligibility says nothing about its US (PFIC) treatment.
Brokerage (NISA/iDeCo) · Rakuten Securities
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
Fees: Many domestic funds and trades are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · SBI Securities
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Fees: Many trades and funds are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · Monex
An established online brokerage often chosen for US-stock access and research tools, with NISA and iDeCo support.
Fees: Commissions vary by product; some funds/trades are low-cost — verify current schedule.
This is education, not a recommendation. Most beginners research low-cost, broadly diversified index funds — for example all-country (全世界株式) or S&P 500 trackers — rather than picking individual stocks, because low fees and diversification are within your control while returns are not. Understand that values fall as well as rise, match the risk to your time horizon, and never invest money you may need soon.
Be very careful. Japanese mutual funds and ETFs are usually PFICs (Passive Foreign Investment Companies) for US tax, which triggers punitive US taxation and heavy Form 8621 reporting — and the NISA tax exemption does not apply to the US. Many US persons in Japan avoid Japanese pooled funds and instead hold US-domiciled assets, but rules are complex. Get advice from a cross-border US/Japan tax professional before investing.