TOKYO, Nov 25 (Reuters) - Brazil is expected to see strong foreign fund inflows backed by its healthy fundamentals and long-term growth prospects despite its recent capital control steps, an executive of a Brazilian financial body said on Wednesday.

Foreign portfolio investments from Japanese investors have been particularly strong and the pace has picked up since October, when Brazil was selected to host the 2016 Olympics, Pedro Bastos, a director of Brazilian Financial and Capital Markets Association (ANBIMA), told a news conference in Tokyo.

"If you are a long-term equity investor, a 2 percent tax on a market that's up 80 percent on a nominal basis and 133 percent on a dollar basis is not a deterrent," Bastos said.

But he said it will take time for the market to see the impact of Brazil's one-month old tax measure aimed at helping to brake appreciation of the country's currency, the real (BRBY: Quote, Profile, Research).

Brazil will charge a 2 percent financial transactions tax on foreign investment flows in stocks and bonds, but the tax will be charged only once. [ID:n19264977]

Bastos said readiness by Japanese investors to invest in Brazilian equities and fixed-income products, as well as in the the real, had picked up significantly in the last two to three months.

"Japanese investors have been long-term investors. Even during the depths of the crisis last year we didn't see any significant outflows," Bastos said.

"They held onto their positions. Now that it has become clearer that the worst of the financial recession is over, I think their willingness to take risk is back again." (Reporting by Chikafumi Hodo; Editing by Michael Watson) ((chikafumi.hodo@thomsonreuters.com; +81-3-6441-1855; Reuters Messaging: chikafumi.hodo.reuters.com@reuters.net)) ((If you have a query or comment on this story send an email to news.feedback.asia@thomsonreuters.com))