/www.bloomberg.com/ By Kanako Chiba
Tokyo, Feb. 18 (Bloomberg) -- Heizo Takenaka's investment advice is coming back to haunt him.
Takenaka, Japan's minister for financial services, was chided by a cabinet colleague today for his advice to buy Japanese exchange-trade funds, which, he said, were sure to be profitable.
``We should be more prudent when making statements about what will make money or not,'' Industrial Revitalization Minister Sadakazu Tanigaki said at a regular press conference after a Cabinet meeting.
Takenaka has already apologized for touting exchange-traded funds, which are index-based investment products that allow investors to buy or sell shares of entire portfolios of stock in a single security.
Last Friday, Takenaka told Parliament he was concerned that securities companies would use his comments in sales pitches. He repeated his apology to reporters today after a Cabinet meeting.
``Some of my expressions were misleading and inappropriate,'' Takenaka said today.
Takenaka on Feb. 7 said he recommended that Cabinet members buy exchange-traded funds.
``Buying exchange-traded funds means buying Japan's future,'' Takenaka said at the time. ``I will buy them and I guarantee it will be profitable.''
Nomura Asset Management Co.'s exchange-traded fund that tracks Japan's Topix index declined 11 percent in the past year ended yesterday.
Tanigaki, the revitalization minister, said he would buy such funds, despite his criticism of Takenaka.
``I am planning to buy some, but I haven't made any purchases,'' he told reporters.