RetireJapan

I have a beginner question.

Let’s say I have a general account (non iDeCo or NISA). Each month I purchase 20,000円 of emaxis slim all country. After ten years I decide I want to cash out 500,000 yen. How do they decide what my capital gains will be? Is it the average of all of my purchases and gains all together? Or do I chose the specific buy dates I want to cash out? Or something else?

https://www.investopedia.com/ask/answer ... egains.asp

" Is it the average of all of my purchases and gains all together? "

Not sure what you mean by "Gains all together".
But anyway. Yes. It's against the average price.

Specifically, it's gains against the quantity you sell against the average price you are deemed to have paid for them in that account.
I think this average purchase price is also called the Cost Basis. (But don't quote me on that. And certainly don't get a tattoo with that on it!)

So if you sell some of those ESAC units, capital gains is calculated as the net sale price, for the units you are selling, against the average purchase price, for the quantity you are selling.

(ESAC = Emaxis Slimm All Country.)

In Japan I think mutual fund cost basis must be determined by the average share cost method. In the US, for instance, you have the option of using average cost basis, LIFO, FIFO or specific lot which gives you more freedom to choose the highest basis for the shares you sell but you do not have those choices here.

Thanks so much for your help everyone