According to an article recently published by Investment News, Japan's money management industry (particularly its mutual fund sector) could be on the verge of a boom.

Economic Facts about Japan

• Japan is the world's second-largest economy.
• World's 10th largest population (127 million).
• Has an estimated $15 trillion in total investment assets, a near-zero interest rate environment and a growing appetite for risk.

Through the end of July, about 58.7 trillion yen ($500 billion) was invested in publicly traded mutual funds, according to the Investment Trust Association in Tokyo. That represents an increase of more than 43% since the end of 2004, or $150 billion in new assets in less than 20 months, said Kazuo Kijima, senior manager in the planning department of the ITA.

"Last year was the turning point; you finally started seeing mutual funds outselling deposits," said Gifford Nakajima, head of marketing for Fidelity Investments Japan Ltd. in Tokyo. The growth has continued in recent months, with mutual fund assets up almost 4.5% since the end of February.

Money management executives estimate that over the next five years, total mutual fund assets under management in Japan could quadruple to reach about $2 trillion.