Investment Funds
Investment funds are a type of fund founded to manage portfolios comprised of capital market instruments, gold, and other precious metals against money collected from investors in accordance with the risk diversification principle and fiduciary ownership principles.
Important Information
Investment funds are categorized into two groups based on their effective settlement: call funds and no-call funds. Orders for no-call funds are realized over the same-day price.
The same-day price for call funds is indicative. The order settlement and the price are defined based on the “deferred maturity time” specified in the fund prospectus.
For call funds, participation fund buy/sell orders placed until the deferred maturity time are realized over the unit price as calculated following the order. Purchase/sale orders placed after the deferred maturity time will be deemed placed after the initial calculation and realized over the share price as of the next calculation.
Accrued interest will be based on the rules of accrual specified in the investment fund’s prospectus and/or bylaws. Otherwise, no interest will accrue.
Investment funds do not offer any yield guarantee or capital protection. Therefore, it is important to check the information, notifications, and investor notices applicable to the fund on the Public Disclosure Platform (KAP) and TEFAS (Türkiye Electronic Fund Trading Platform) before trading.
The platform’s application principles and rules are applicable for all fund transactions realized through TEFAS.
Advantages of Investment Funds
Active and professional management
Investments are actively managed by professional fund managers who continuously follow up and interpret the markets.
Risk diversification
Risk can be diversified and minimized only if and to the extent the securities to be included in the portfolio of the investment fund are fixed-income and foreign exchange-indexed securities and are diversified with such instruments as stocks.
Convertibility to cash
As the value increases in the fund portfolio are reflected on the fund unit price on a daily basis, investors may realize their investments in the fund, together with interests and other returns accrued thereon, within the notice periods of related funds.
Transparency and ease in access to information
Returns on investment funds and other related information are easily available via distribution channels, such as newspapers, magazines and related internet sites at any frequency.
Effective and productive investment of small savings
It makes it possible to invest in securities with a high potential return on investment, which cannot otherwise be achieved for small savings.
Time saving
As securities are valued and controlled and their coupons, interests, and dividends are collected by the fund management, investors are not required to take such actions as maturity follow-up and collection, which require the use of time and savings.
Investment Funds’ Taxation Principles
For Full and Limited Taxpayer Real Persons;
- No withholding tax is applicable for yields from participation certificates of investment funds with a portfolio, 51% of which are invested in shares traded at BIST and kept for a holding period of one year.
- The withholding tax applicable for yields from participation certificates of share-intensive funds, 80% of which are invested in shares traded at BIST (except for MKYO) is 0%.
- The withholding tax applicable for yields from participation certificates of venture funds and real-estate investment funds kept for a minimum of two years is 0%.
- The withholding tax applicable for yields from investment funds acquired from December 23rd, 2020, to April 30th, 2024 except for variable, mixed, eurobond, foreign, and hedge funds and any fund with FX in its title is 0%.
- The withholding tax rate, which is 0% for income and gains, will be applied as 7.5% for investment funds acquired between 01.05.2024 - 31.10.2024 (including these dates) except for Variable, Mixed, Eurobond, Foreign Debt, Foreign, Hedge Funds and investment funds with the expression "Foreign Exchange" in their fund title.
- The withholding tax applicable for yields from participation certificates of investment funds other than those listed above and other stock market funds is 10%.
- The withholding tax is final. It has not been declared.
For equity companies and similar foreign companies;
- The withholding tax applicable for earnings by joint-stock companies, limited partnerships, and limited-liability companies is 0%. The earnings are subject to corporate tax.
- Except for the investment funds with FX assets and gold as well as other precious metals and capital markets instruments based on these in their portfolio, dividends from participation certificates of mutual funds subject to full obligation and revenues from returning the participation shares to the fund as well as dividends from participation certificates of venture funds subject to full obligation and revenues from returning the participation shares to the fund are exempt from corporate tax while corporate tax is applicable to others.
- The withholding tax applicable for earnings by foreign joint-stock companies, limited partnerships, and limited-liability companies, as well as foreign institutions specified to be similar to investment funds and investment trusts established under the Capital Markets Law by the Ministry of Finance, is 0%. The withholding tax is final and it is not declared.
Regarding the organizations other than those listed above;
- No withholding tax is applicable for yields from participation certificates of mutual funds with a portfolio, 51% of which are invested in shares traded at BIST and kept for a holding period of one year.
- The withholding tax applicable for yields from participation certificates of share-intensive funds 80% of which are invested in shares traded at BIST (except for MKYO) is 0%.
- The withholding tax applicable for yields from participation certificates of venture funds and real-estate investment funds kept for a minimum of two years is 0%.
- The withholding tax applicable for yields from investment funds acquired from December 23rd, 2020, to April 30th, 2024 except for variable, composite, eurobond, foreign and hedge funds and any fund with FX in its title is 0%.
- The withholding tax rate, which is 0% for income and gains, will be applied as 7.5% for investment funds acquired between 01.05.2024 - 31.10.2024 (including these dates) except for Variable, Mixed, Eurobond, Foreign Debt, Foreign, Hedge Funds and investment funds with the expression "Foreign Exchange" in their fund title.
- Yields from investment fund participation certificates other than those listed above are subject to a 10% withholding tax.
- Institutions that are obligated to submit tax statements can deduct the withholding tax paid from the corporate tax.
TEFAS Investment Funds
What is Turkish Electronic Fund Trading Platform (TEFAS)?
The Türkiye Electronic Fund Trading Platform (TEFAS) is an electronic platform used for trading of all investment funds operating in capital markets by a resolution of the Capital Markets Board. TEFAS has been in operation since January 9th, 2015.
TEFAS makes it possible to compare all funds via a single system, and to reach all funds available in the market through a single investment account. It is operated by Istanbul Takas ve Saklama Bankası A.Ş. (Takasbank).
Investment funds managed by all portfolio management companies can be traded on TEFAS.
How can I trade?
After opening an investment account in the Bank, you can easily purchase or sell all investment funds traded at TEFAS via our branches, Internet Banking, Burgan Mobile and Call Center without paying any extra fee or commission.
Important Information
| Turkey Electronic Fund Trading Platform (TEFAS) | FULL DAY | HALF DAY |
|---|---|---|
| INSTRUCTIONS (TRADES WITH SAME DAY SETTLEMENT) | 09:00-13:30 | 09:00-11:30 |
| INSTRUCTIONS (TRADES WITH FUTURE DAY SETTLEMENT) | 09:00-17:45 | 09:00-12:30 |
| UNMATCHED INSTRUCTION AUTOMATIC CANCELLATION (TRADES WITH SAME DAY SETTLEMENT) | 13:35 | 11:35 |
| UNMATCHED INSTRUCTION AUTOMATIC CANCELLATION (TRADES WITH FUTURE DAY SETTLEMENT) | 17:50 | 12:35 |
| DEFERRED MATURITY (TRADES WİTH FUTURE DAY SETTLEMENT) | 13:30 | 11:30 |
| CASH SETTLEMENT TIME (TRY) | 14:00 | 12:00 |
| DEFAULT TIME | 15:00 | 12:30 |
Click here for Tefas trading hours.
Collaborations
The Bank is in the course of an active marketing cooperation with the Portfolio Management Companies listed in the table.
Regarding the withholding tax rate change decision for investment funds to expire on 31.10.2024
The withholding tax rate for investment funds acquired between 23.12.2020-30.04.2024 (including these dates) will continue to be applied as 0% except for Variable, Mixed, Eurobond, Foreign Debt, Foreign, Hedge Funds and investment funds with the expression "Foreign Exchange" in their fund title.
The decision numbered 8484 of May 1st, 2024, the withholding tax rates for investment funds included in the Temporary Article 67 of the Income Tax Law numbered 193 have been revised. Regarding the decision numbered 8775 of August 31st, 2024, the date July 31st,2024 has been extended to October 31 st, 2024.
According to this;
The withholding tax rate, which is 0% for income and gains, will be applied as 7.5% for investment funds acquired between 01.05.2024 - 31.10.2024 (including these dates) except for Variable, Mixed, Eurobond, Foreign Debt, Foreign, Hedge Funds and investment funds with the expression "Foreign Exchange" in their fund title.
The 10% withholding tax rate will continue to be applied for income and gains from investment funds which include “Variable, Mixed, Eurobond, Foreign Debt, Foreign, Hedge Funds” and investment funds with the expression "Foreign Exchange" in their fund title.
Investors who acquired funds with withholding tax exemption between 23.12.2020 and 30.04.2024 will continue to maintain the withholding tax advantage for their existing funds.
There is no withholding tax on the income obtained from investment funds with the title of Equity Intensive Fund.
*Withholding tax rate information is shared for informational purposes for individual investors and you can find detailed information in the prospectus of the relevant investment fund.
You can access the relevant decisions via the links below.
https://www.resmigazete.gov.tr/eskiler/2024/08/20240801-1.pdf