New NISA Growth Investment Frame 2.4 Million Yen: What you choose can change your assets by over 1 Million Yen in 10 years

Since the New NISA began, one of the most frequently asked questions among investment beginners has been “What should I buy in the Growth Investment Frame?” The Growth Investment Frame, which allows up to 2.4 million yen per year, is a major pillar of the NISA system alongside the Tsumitate (regular) Investment Frame, but the way you use it can lead to surprisingly large differences. Even if you invest the same 2.4 million yen each year, the assets in 10 years can differ by more than 1 million yen depending on what you choose, which is by no means an exaggeration.

In this article, we will start with a correct understanding of the Growth Investment Frame, then delve into what kinds of products are suitable, what is not suitable, and how large the long-term difference can be, in a way that reflects real-world situations as closely as possible. We will discuss the essential criteria for making choices that are not obvious just by looking at the products listed in securities company rankings of recommendations.

First, let’s review the basic mechanism of the Growth Investment Frame. Under the New NISA, you can invest up to 2.4 million yen per year, with a lifetime investment limit of 12 million yen. When combined with the annual 1.2 million yen in the Tsumitate Investment Frame, you can operate tax-free up to 18 million yen over a lifetime. A key feature of the Growth Investment Frame is that you can invest in a wider range of products than the Tsumitate Frame. The Tsumitate Frame is limited to investment trusts and ETFs that meet the standards set by the Financial Services Agency, whereas the Growth Investment Frame allows a broader selection, including individual stocks, REITs, a variety of ETFs, and ordinary investment trusts.