Investment funds in Turkey are considered one of the acceptable options to invest, it is a portfolio that includes a set of the most important companies managed by specialized experts making studies about the best companies that could be invested in to guarantee the best possible return, investment funds in Turkey aims to collect investors’ capitals who are interested in investing in one of the investment funds in order to achieve investment profits as no one business man can achieve individually because of the limited available resources.
What are Investment Funds in Turkey?
Shared investment fund consists of uncombined assets of investment shares, which is created by investment funds managing companies with its special lists and related laws to participate in, and in order to operate a portfolio for investors based on credit ownership or assets or other funds, it is collected from investors in return to their participation shares.
Types of Investment Funds in Turkey?
1.Inclusive equity fund: it covers the funds that at least 80% of the total fund value is continuously invested in local or foreign exporters shares.
2. Inclusive Fund for Precious Metals: it covers gold and precious metals that is traded in the stock market and investment funds in the tools of precious metals-based capital market.
3. Inclusive Fund Basket: which consists of participation shares in other funds and funds that are being traded in the stock market.
4. Inclusive Money Market Fund: its from the funds that its portfolio fully consists of high liquidity money, and tools for capital market with a maximum maturity of 184 days and an average portfolio maturity of 45 days calculated daily.
5. Inclusive Participation Fund: which its portfolio entirely consists of rental certificates, participation accounts, participation shares, precious metals, gold, money that is not based on interest, and capital market tools that the commission sees suitable.
6. Variable Inclusive Fund: this type of funds is not listed in any of the types listed above because of its portfolio restrictions.
7. Free Inclusive Fund: It is the one whose participation shares are established to be sold to qualified investors only.
What are the Properties of Investment Funds in Turkey?
Investment funds features a set of properties:
1. Any of the investors’ capitals are being managed by professional experts in managing investment funds.
2. Risks can be at lowest because of the variety of the shares that can be added to the investment funds portfolio with tools like fixed income, foreign currencies, indicators, and stocks.
3. It is allowed to invest in high profit stocks that usually it cannot be achieved with small capitals.
4. And because the evaluation and control of securities and the collection of interest and profits will be done by the fund management, investors are freed from transactions that require time and resources.
5. Investors can convert their investment in the fund to liquid cash as much as they need, due to the fact that the increase in the value in the fund's portfolio is reflected in the value of the portfolio on a daily basis.
6. Saving a big amount of time and cash when doing sell or buy transactions to the portfolio.
What is the Importance of Investing in Investment Funds?
1. The importance of investing lies in calculating the portfolio value in the evaluation day through taking into account the prices that are established on the stock exchanges, where the trading, buying and selling of assets in the portfolio takes place.
2. Participation price that allows participating in the fund is being calculated by the founder on all the business days.
3. The total value of the fund is being determined by adding the fund's receivables to the value of the fund's portfolio and deducting its debts.
4. Also, the price of a share can be acquired by dividing the total value of the fund by the shares count at the day of evaluation.
Investment Funds Returns in Turkey:
_Returns on investment funds are related to exchange rates and inflation rates, but profits can be estimated through the following example:
In case of investing 100 Turkish Liras in the fund with a participation fee of TL, 100 shares can be obtained.
If the total value of the fund is decreased to 0.9 Turkish Lira because the portfolio value is decreased, the shares count is till at 100 shares, and their value now is 90 Turkish Liras.
But if the participation fee is increased to 1.1 Turkish Lira, then your investment value is now increased to 110 Turkish liras (assuming there is no trading commissions)
How Do I Participate in Turkish Investment Funds?
To participate in an investment fund, you should have a participation certificate in a shared investment fund, using this file you can be a partner in the investment funds portfolio, as this file will grant you the opportunity to convert your savings to the fund and make profit through trading in the market.
The Relation Between Investment Funds in Turkey and Turkish Citizenship:
According to the amendment submitted in the official gazette on 6/1/2022 in the H term from the second section from the term 20 of the list related to apply the citizenship law, foreigners can obtain Turkish citizenship exceptionally when participating in the real estate investment fund for an equity or a project with a value not less than 500k USD or its equivalent in other foreign currency, determined by the capital markets commission, provided that the participation share in the investment fund is kept for at least three years, and sold to the Central Bank of Turkey.
