A Deep Dive into Japanese Investors' Portfolios During Yen Depreciation

Understanding the Current Investment Climate in Japan

Recent times have seen significant shifts in the investment landscape in Japan, particularly in light of the new NISA system set to launch in 2024 and ongoing yen depreciation. A recent survey conducted by 400F Co., Ltd., which runs the household diagnosis and consulting service OkaneCo, aimed to uncover current trends and strategies among individual investors. The survey involved 360 OkaneCo users, shedding light on their investment portfolios and perspectives on domestic and foreign stocks.

Key Findings from the Survey

- 71.7% of Respondents Are Actively Investing

When asked about their current investment status, a striking 71.7% (258 individuals) confirmed they are actively involved in investments, reflecting a strong awareness and commitment to asset building among OkaneCo users.

- A Hybrid Investment Approach is Dominant

Among those engaged in investing, a significant 92.3% reported holding Japanese stocks, while 76.4% had investments in foreign stocks, indicating a preference for a hybrid approach. The average asset allocation revealed that 49.5% of their portfolios were in Japanese stocks compared to 37.6% in foreign stocks, showcasing an inclination towards combining both markets.

- Reasons for Choosing Japanese Stocks

Investors highlighted their motivations for investing in Japanese stocks primarily due to expectations of high dividends and shareholder benefits, with 58.4% selecting this option. Other notable reasons included the expectation of corporate growth (33.2%) and a desire to invest in familiar companies, free from currency fluctuations (27.2% each). This suggests that Japanese investors heavily prioritize stable income through dividends and perks.

- Foreign Stocks for Higher Returns

Conversely, when it comes to foreign stocks, the predominant motivation was the potential for higher returns, indicated by 51.4% of respondents. Additionally, 37.9% aimed for asset diversification, and 36.2% sought corporate growth prospects. This dual focus on capital gains through foreign investments while seeking income through domestic stocks represents a strategic maneuver by investors.

- Impact of Yen Depreciation

The influence of yen depreciation on investment choices was significant, with 64.3% of respondents acknowledging its impact on their selection of investment opportunities.

- Japanese Stocks Leading in New NISA Growth Investment Category

Among investors utilizing the new NISA growth investment framework, 47.6% opted for individual Japanese stocks, making it the most favored choice, followed by foreign stocks via investment trusts at 41.6%.

Summary of Investors' Strategies

This survey identified prevalent strategies among Japanese individual investors as they navigate the complexities of the changing financial environment. While capitalizing on stable income through Japanese investments, they also actively pursue higher capital gains and diversification through foreign stocks, clearly outlining a hybrid portfolio strategy that combines the strengths of both markets.

Conclusion

The recent findings highlight the evolving landscape for individual investors in Japan, as they address the challenges and opportunities presented by new policies and economic conditions. This strategic blend of domestic and foreign investments underscores a broader trend that financial advisors and platforms like OkaneCo can leverage to better support their clients. OkaneCo Magazine continues to provide insights and advice for investors, fostering an informed approach to both novice and seasoned investors alike.

For detailed guidance on how to start investing as a beginner, check out our article: How Much to Start Investing for Beginners. By making the investment process accessible and understandable, OkaneCo is committed to helping users navigate their financial worries and lead fulfilling, prosperous lives.

Survey Overview

- Name: OkaneCo Investment Portfolio Survey
- Method: Web-based questionnaire
- Period: October 10, 2025 - October 13, 2025
- Participants: 378 OkaneCo users
- Age Distribution: Under 30 (16.7%), 30s (26.3%), 40s (33.1%), 60+ (23.9%)
- Household Income: Under ¥4 million (28.6%), ¥4-6 million (20.8%), ¥6-8 million (12.8%), ¥8-10 million (12.2%), Over ¥10 million (18.6%)

Before sharing or publishing findings, please reference the survey appropriately as “OkaneCo Investment Portfolio Survey”.

About OkaneCo

Launched in November 2017 with a mission to solve financial challenges through connection, 400F Co., Ltd. provides users with tailored financial advice from qualified professionals such as financial planners. Users can diagnose their finances anonymously and for free while comparing their household situations with peers, ensuring access to customized strategies for managing their personal finances.

Company Name: 400F Co., Ltd.
Headquarters: 9-1 Kabutocho, Chuo-ku, Tokyo, FinGATE BLOOM 4F, 103-0026 Japan
Established: November 1, 2017
CEO: Jin Nakamura
Services: Operations of OkaneCo, financial advisory services, and more.