TOKYO -- Japanese financial institutions began taking applications for installment-type Nippon Individual Savings Account program, popularly known as NISA, on Oct. 2, as they try to encourage new investors to build up their long-term assets through low-cost investment trusts. Banks and brokerages are trying to attract younger clients with little or no investment experience.
The installment-type NISA is a tax-exempt individual savings vehicle. Under the program, investors make monthly contributions to low-cost investment trusts approved by the Financial Services Agency. Investors can contribute up to 400,000 yen a year to the trusts and with the gains tax exempt for 20 years, starting from the first year of contributions.