RetireJapan

Dear All,

I wanna ask your opinion,
I have started investing from last month in tsumitate NISA. I want to diversify my account in bonds and stocks account, but I couldn't find funds that use 100% bonds. The closest I've got is DCニッセイワールドセレクトファンド(安定型), but this still has a small percentage of index stocks. Do you have any other recommendation? or do you think I should invest in bonds outside of my tsumitate NISA account? (but bear in mind that I am still a student so the amount of savings I can allocate for investments is still very limited).

Thank you in advance!

Hi jay89

Welcome to the forum! Which provider are you using?

I'm becoming a bit of an eMAXIS Slim fan recently, so my first check was to see if they do a bond fund, and they do:

ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス 0.1836%
This follows the FTSE International Government Bond (Ex Japan, yen base) index.
https://emaxis.jp/fund/252667.html

That doesn't include Japanese bonds though, but they also have
ｅＭＡＸＩＳ Ｓｌｉｍ 国内債券インデックス 0.15012％
https://emaxis.jp/fund/252648.html

Note I don't use these myself and I've just googled it now, but looks good on paper.

You can't buy 100% bond or REIT funds in a Tsumitate NISA. The only option is to buy them in a balanced fund and mix and match them with a stock fund so that you get the asset allocation you want. For example, you could put half your money into the eMaxis Slim 8-way balance fund (ｅＭＡＸＩＳ Ｓｌｉｍ バランス（８資産均等型）) and half into their all country world index fund (ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）).

Now that you guys have brought the topic that I also discussed in some other threads I ask an open question to the forum.

Anyone know if there is any particular (e.g.: government restrictions on Tsumitate NISA product) reason for not being able to choose a 100% bond fund in the Tsumitate NISA?

I am using SBI but it seems it’s not only this provider but all of them.

I am using my extra iDeCo account to buy the bond fund part but I would love to do the same using only the Atsumi Tate NISA (I know you are able to buy 100% bond fund if you use the normal NISA account - the one that expires in 5 years).

ivanpgs wrote: ↑Wed Nov 21, 2018 1:03 pm Anyone know if there is any particular (e.g.: government restrictions on Tsumitate NISA product) reason for not being able to choose a 100% bond fund in the Tsumitate NISA?

Only stock funds or mixed asset funds containing stocks, bonds and/or REITs are allowed. It's here on p.12 https://www.fsa.go.jp/common/law/kokuji ... nai540.pdf

fools_gold wrote: ↑Thu Nov 22, 2018 12:09 am

ivanpgs wrote: ↑Wed Nov 21, 2018 1:03 pm Anyone know if there is any particular (e.g.: government restrictions on Tsumitate NISA product) reason for not being able to choose a 100% bond fund in the Tsumitate NISA?

Only stock funds or mixed asset funds containing stocks, bonds and/or REITs are allowed. It's here on p.12 https://www.fsa.go.jp/common/law/kokuji ... nai540.pdf

Nice find!

adamu wrote: ↑Mon Nov 19, 2018 6:56 am I'm becoming a bit of an eMAXIS Slim fan recently, so my first check was to see if they do a bond fund, and they do:

*information about funds that can't be bought in a Tsumitate NISA*

fools_gold wrote: ↑Thu Nov 22, 2018 12:09 am

ivanpgs wrote: ↑Wed Nov 21, 2018 1:03 pm Anyone know if there is any particular (e.g.: government restrictions on Tsumitate NISA product) reason for not being able to choose a 100% bond fund in the Tsumitate NISA?

Only stock funds or mixed asset funds containing stocks, bonds and/or REITs are allowed. It's here on p.12 https://www.fsa.go.jp/common/law/kokuji ... nai540.pdf

Sorry for my reply that was unhelpful in the context of Tsumitate NISA. Still, convinces me that I'm happier with the flexibility of the regular NISA.