As the developments in capital markets continue to progress rapidly, the interest of investors in funds remains strong.
Accordingly, the amount managed by Portfolio Management Companies (PMC) reached 5 trillion 564 billion Turkish lira last month.
According to data compiled from the Turkey Association of Institutional Investors (TKYD), the size of investment funds has increased by 119% since the beginning of the year, reaching 3 trillion 909 billion 140 million Turkish lira as of September 23. During this period, the total number of investment funds also rose by 16%, reaching 2,098.
THE LARGEST GROWTH IS IN FREE FUNDS
Among investment funds, free funds hold the largest amount at 2 trillion 7 billion Turkish lira, while money market funds, which have seen a 519% increase since the beginning of the year, reached a size of 916.7 billion Turkish lira, marking them as the fastest-growing instrument.
During the same period, participation funds with a 189% increase reached a size of 135.3 billion Turkish lira, followed by precious metals funds, which increased by 107% to reach 76 billion Turkish lira.
As of September 23, the growth performances since the beginning of the year are as follows: equity funds at 97%, free funds at 91%, fund-of-funds at 66%, venture capital funds at 52%, exchange-traded funds at 45%, mixed and variable funds at 38%, and real estate funds at 35%.
During this period, venture capital funds amounted to 192.6 billion Turkish lira, equity funds to 166.4 billion Turkish lira, real estate investment funds to 102.2 billion Turkish lira, exchange-traded funds to 93.3 billion Turkish lira, debt instrument funds to 87.7 billion Turkish lira, fund-of-funds to 69.4 billion Turkish lira, and the size of mixed and variable funds was 62.1 billion Turkish lira.
PRECIOUS METALS FUNDS PROVIDED THE HIGHEST RETURNS IN THE LAST YEAR
Furthermore, when comparing the return rates of investment funds, precious metals funds, which provided a return of 74.31% over the last year, were the most lucrative instrument, followed by exchange-traded funds at 62.45%, participation funds at 56.79%, and money market funds at 55.42%.
In other investment funds, mixed and variable funds provided a return of 50.66%, fund-of-funds at 49.86%, equity funds at 48.83%, and debt instrument funds at 43.77%.
In the last three years, equity funds provided the highest returns at 767.2%, followed by exchange-traded funds at 613.1%, precious metals funds at 477.9%, mixed and variable funds at 454.9%, fund-of-funds at 295.4%, participation funds at 266.9%, debt instrument funds at 155.4%, and money market funds at 131.7%.
THE HIGHEST RETURNS IN BES FUNDS CAME FROM VARIABLE FUNDS
During the same period, the returns of individual retirement system (BES) funds were also analyzed. As a result, variable funds provided the highest return at 83.5% over the last year.
During this time, gold funds yielded 78%, flexible and mixed funds 58.6%, fund-of-funds 57.5%, money market funds 56.1%, equity funds 51.5%, private sector bonds and bills (ÖST) funds 49.1%, public external debt instrument funds 46.8%, public internal debt instrument funds 42.5%, contribution funds 39.7%, standard funds 35.6%, and index funds 21.2%.
In the last three years, the BES fund type that provided the highest profits was equity funds at 926.8%. Index funds followed with a return of 786.9%, while variable funds yielded 738.2%, gold funds 521.3%, flexible and mixed funds 453.6%, public external debt instrument funds 361.3%, fund-of-funds 303.3%, contribution funds 225.7%, standard funds 221.4%, public internal debt instrument funds 157.8%, ÖST funds 139.7%, and money market funds 130.3%.
ATAK CLASSIC FUNDS HAD THE HIGHEST RETURNS AMONG OKS FUNDS
In the last year, the highest returns among automatic participation system (OKS) classic funds were provided by Atak classic funds at 68%, while cautious classic funds yielded 65%, and conservative classic funds 64.7% returns. Other OKS funds included aggressive classic funds at 60.2%, balanced classic funds at 58.3%, starter classic funds at 56.7%, dynamic classic funds at 50.4%, and standard classic funds at 43.8%.
In the last three years, aggressive classic funds yielded 914%, Atak classic funds 798.1%, dynamic classic funds 586.2%, balanced classic funds 499.7%, standard classic funds 259.6%, cautious classic funds 234%, conservative classic funds 204.1%, and starter classic funds 143% returns.
“WE NOTICE A SIGNIFICANT INCREASE IN INVESTMENTS IN MONEY MARKET FUNDS”
TKYD President Yağız Oral emphasized the increase in the number of individual investors in investment funds, noting that the number of investors has risen from 3 million to 5.2 million in the past four years.
Oral remarked, “We notice a significant increase in investments in money market funds. The most substantial growth in terms of numbers has also been observed in money market funds, which have come to the forefront as a different alternative to deposits recently.”
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
