A financial planner examined recurring investments in a fund tracking the Nikkei 225 as a third investment option within NISA, comparing the principal and investment results of investing ¥50,000 per month over 5 years. The estimate showed that investing in the Nikkei 225 outperformed all-country and S&P 500 funds.
A practicing financial planner examined a case involving monthly investments of ¥50,000 in an index fund over 5 years. Based on the assumption that the principal would grow to approximately 1.8 times its original amount, the annualized return was estimated at approximately 16%. Recurring investment is likened to the slow pace of a tortoise, but is said to be capable of producing a certain level of results.
According to the explanation of Chart 3, investing under the same conditions in eMAXIS Slim Domestic Equity (Nikkei 225), a fund tracking the Nikkei 225, would turn the ¥3 million principal into 2.32 times that amount, or approximately ¥6,404,567. This is said to have outperformed diversified investments in all-country and S&P 500 funds.
Based on these results, the article concludes that investing in the Nikkei 225 is the most effective from an investment-efficiency perspective. However, it also notes that after the Nikkei 225 reached a 35-year high in December 2024, stock prices rose to 1.68 times their previous level over approximately 1.5 years.
Looking ahead, it suggests that the Nikkei 225 may not remain the market's main focus over the long term as conditions fluctuate, while indicating that attention should be paid to the Nikkei 225's performance at present.