“NISA will have limited impact on the investment attitude of Japanese people,” Yonezawa said. “I doubt they’ll behave rationally when it comes to asset management as they’ve been unresponsive to incentives offered by the government in the past.”
The expiration of another incentive plan for investors at the end of this year will also limit NISA’s impact, according to Ichiro Takamatsu, a fund manager at Bayview Asset Management Co.
Levies on dividends and capital gains will return to 20 percent after being cut by half for the past 10 years, Takamatsu said.
“Individual investors will sell shares toward the end of the year before the tax rate is raised back,” Takamatsu said.