Types of accounts
Strategy
Bogleheads is a popular recommendation for approaching a long term investment strategy.
Several studies shows that lump-sum ("LS" ie investing all funds as soon as funds are available) is a significantly better way to invest money on the world equities markets than voluntary spreading the amount over a period of time ("DCA" aka dollar cost averaging).
2022-04 Do I need a Financial Advisor ?
Long-term/low-risk investing
Tax advantaged Accounts : iDeCo
iDeco is a very popular, heavily tax-advantaged investment account.
Disadvantages includes funds locked until 60 years old, and the fund choices are usually relatively few.
Contributions are tax free, and gains are also tax free for several years. Contributions maximum varies between 0.1 and 0.8 MJPY per year depending on eligibility.
Note that some company DC or DB pension plan interfere with eligibility for iDeco. Your ability to use the iDeco will depend on the implementation done by your employer, and opening an iDeco normally requires asking your employer HR to fill paperwork.
iDeco will be changed from 2022, extending age and contributions.
See this post about the beneficiary of your DC account.
Tax advantaged Accounts : NISA
NISA is a popular tax advantaged investment account.
It allows a fixed amount of purchase per year, and those assets gains will then be tax free for several years. Unlike iDeco, contributions are not tax free. As of 2023, an adult can have one NISA account (either regular or tsumitate) while minors can use the Junior NISA.
It is popular with those who want to invest more than the iDeco allows, or do not want the 60 years old constrain of the iDeco.
Disadvantages include the losses not being able to offset gains made in other accounts, and losses may be reset at some point - with future gains being taxed.
NISA : Regular NISA
As of 2023 the ordinary NISA allows 1.2 MJPY of purchase per year, for 5 years. It will run until the end of 2023.
From 2024 a new NISA is planned to run with a purchase allowance of 1.2 MJPY in a Tsumitate bucket and 2.4 MJPY in a growth bucket for a combined total of a 3.6 MJPY maximum limit per year. The contribution would have a lifetime limit of 18 MJPY.
NISA : Tsumitate NISA
As of 2021 the tsumitate NISA allows 0.4 MJPY of purchase per year, for 20 years. It will end in 2042, final year 2061.
NISA : Junior NISA
As of 2021 the Junior NISA allows 0.8 MJPY of purchase per year, for children under 20. Is is planned to end in 2023. Funds held in the Junior NISA will remain tax free until the child turns 18.
Unlike the regular and tsumitate NISA, the Junior account cannot move between providers and money cannot be taken out before 18 years old in principle.
General investment account (not tax advantaged)
A general investment account does not have limitation on amounts like iDecos or the NISAs have.
Upon creation, the way the tax tracking will be dealt with must be chosen. There are three options (特定預り/一般預り) depending on who tracks the profit/loss and who files the taxes, explained here : https://news.mynavi.jp/kabu/account-type/
Providers
As of 2021, the main popular low-cost providers for investment are SBI, Rakuten, and Monex. Kabu.com is another option, especially for AU or Mitsubishi UFJ users.
They offer low fees, large access to funds, and a variety of investment accounts (iDeco, NISAs, regular investment accounts etc).
However none currently offers an english interface.
Providers : SBI
How to transfer money to SBI. For #3, the money is sent to a dedicated account in one of three major banks, when transferring to this account it is important the 'remit from' name in the transfer matches the SBI account holder name.
How to purchase funds.
It is possible to set a direct debit from a bank account, however the funds take two weeks to arrive. This allows to automate a monthly investing purchase.
SBI also offers a credit card, which as of 2023 provides users with from 0.5% to 5% of points on up to ¥50,000 of monthly mutual fund purchases, depending on the kind of card you hold.
Providers : Rakuten
Rakuten also offers a credit card, which as of 2023 provides users with 1% of points on up to ¥50,000 of monthly mutual fund purchases.
Providers : Monex
Monex also offers a credit card, which as of 2023 provides users with 1.1% of points on up to ¥50,000 of monthly mutual fund purchases.
Providers : Kabu.com
Kabu.com also offers a credit card, which as of 2023 provides users with 1% of Ponta points on up to ¥50,000 of monthly mutual fund purchases.
Linking your Kabu.com account with your AU Jibun Bank account also provides you with a bonus 0.099% on your bank deposits.
Products
2021-05 Insurance as an investment
2021-05 Investing in JPY or USD
2021-05 Popular investment products. eMaxis Slim is a popular range of product, with the most popular being the Global Equity (all countries)), based on the MSCI World index (see comment on index and its currency basket ).