Investment Funds target maximum yields, and utilize your savings through different investment tools by distributing your risk. The Investment funds created are effectively managed by professional fund managers.
Advantages of Investment Funds
- Investment Funds offer the advantage of high-volume investments, and are managed by professional fund managers.
- Investment Funds ensure risk distribution by investing in different capital market instruments.
- Investment Funds are easy to cash out.
- Investment Funds provide tax advantages.v
What is Investment Fund?
Managed by authorized institutions, Investment Funds consist of portfolios that are formed using investor funds and comprised of capital market instruments such as stocks, G-Bonds/T-Bills, private sector borrowing instruments, reverse repos as well as gold and other precious metals.
Each investor participates in the fund by purchasing the participation certificate representing a portion of the fund portfolio.
What is the difference between a Type A Fund and Type B Fund?
- Type A refers to the funds that continue to monthly invest at least 25% of their average portfolio value in the stocks of the companies resident in Turkey. No such limitation applies to Type B funds.
- The tax advantage granted to Type A Funds is another difference between Type A and Type B Funds.
What is the minimum fund amount that I can purchase?
- Each share corresponds to one fund. At least 1000 shares must be purchased.
- The price announced in newspapers and our Website is the unit share price.
Example: If the announced unit share price is 0.017720-TL, the amount that must be purchased at minimum is 0.017720-TL x 1000 shares= 17.720.-TL.
What are fund trading hours and transfer-to-account time?
As per the “Communiqué on Amendment to the Communiqué on Principles of Investment Funds” dated 11.08.2001, forward pricing method has become applicable to type A and type B funds, except liquid funds. Accordingly, the funds are transferred to your account within three days at latest.
Bizim Menkul Değerler Type A Funds Trading Hours
- If the customer has given the buy order by 12:00, he will purchase the fund over the share price determined on the morning of the next day (T+1) and the number of funds he wants to purchase will be transferred to his account on T+2.
- If the customer gives buy order after 12:00, he will purchase the fund over the share price announced two days later (T+2) and the fund will be transferred to the customer’s account on T+3.
- When buying a Type A Fund, the Customer will not know the fund price. For instance, the customer wanting to purchase fund at 11:00 Monday will communicate the request and will be able to buy over the fund price announced on Tuesday morning.
- On Wednesday, the relevant number of funds will be transferred to the customer’s account over the price announced on Tuesday morning. However, the Customer will be allowed to sell the fund he has bought on Tuesday without waiting for transfer of the fund to his account.
- The customer wanting to purchase fund at 14:00:00 Monday will communicate the request and will be able to buy over the fund price announced on Wednesday morning. On Thursday, the relevant number of funds will be transferred to the customer’s account over the price announced on Wednesday morning. However, the Customer will be allowed to sell the fund he has bought on Wednesday without waiting for transfer of the fund to his account.
- Due to the inability to know precisely the price applicable to the trading transaction under the forward pricing system, participation certificate amounts are collected by adding a 20% margin per day over the latest announced share price. The balance remaining after the margin amount is charged as of day the final buy price is finalized will be re-credited to the free account.
- If the customer gives sell order by 12:00, he will sell the fund over the share price announced the next day's morning (T+1) and the amount derived from the sell transaction will be transferred to the customer’s account on T+2.
- If the customer gives sell order after 12:00, he will sell the fund over the share price announced two days later (T+2) and the amount derived from the fund will be transferred to the customer’s account on T+3.
- The request of the customer wanting to sell fund at 11:00 Monday will be actualized over the fund price announced on Tuesday morning and the amount derived from the sell transaction will be transferred to customer’s account on Wednesday.
- The request of the customer wanting to sell fund at 14:00 Monday will be actualized over the fund price announced on Wednesday morning and the amount derived from the sell transaction will be transferred to customer’s account on Thursday.
Where can I follow daily fund trading prices?
- You can follow daily fund selling prices on Türkiye Finans Website.
Is fund trading subject to commission fee?
- Fund trading transactions are free of commission fee.
How are Investment Funds taxed?
- If the investor wants to sell the fund participation certificate, only 10% of the derived income will be withheld as tax.
- Withholding is not over the portfolio earning, but over the income derived by the investor.
- The fund investor has the right to defer the tax until the sales of the fund participation certificates they hold. Investors do not have to pay taxes as long as they have not dispose of their fund participation certificates.
- Withholding is not collected over the income derived in case where the participation certificates of an investment fund with stocks comprising at least 51% of the portfolio are held for over 1 year and then sold (return to the fund).
- Tax basis in Investment Fund sell transactions is calculated over the sales price with First In First Out (FIFO) method.
Are Investment Funds protected?
- The principles governing investment funds are provided under the Capital Market Board Communiqué (Serial;VII No:10).
- Accordingly, the fund issuer does not own the investment fund, and investment funds may not be collateralized, pledged or otherwise foreclosed by third parties.
- Also, the issuer is responsible under the Capital Market Law to distribute the risk and manage, represent and hold in custody the fund in a way to protect investor rights by the fiduciary ownership principles.
- The manager is responsible to manage the fund portfolio in accordance with the provisions of laws, communiqués and fund rules.
- The securities are deposited under the assurance of Takasbank A.Ş., the official clearing and custody house.
- Any account activity under the funds is supervised by the Capital Market Board. The funds are also audited by independent audit firms.