Investment Products

Mutual Funds

Mutual funds are a type of fund founded to manage portfolios comprised of capital market instruments, gold and other precious metals against moneys collected from investors in accordance with risk diversification principle and fiduciary ownership principles.

Each investor becomes a partner of the fund by purchasing fund participation certificates representing a portion of portfolio owned and held by the fund. Fund participation certificates are kept in custody in the name of investors. Fund portfolios are managed by professional fund managers continuously following up and monitoring the market with the aim of maximum return on investment by ensuring a well-balanced distribution of risks in strict compliance with the investment strategies specified in the fund bylaws.

Mutual funds do not have any guaranteed yield or any capital protection. For this reason, before trading, investors should read the current prospectus, key investor information document and other documents of the fund they want to trade at Public Disclosure Platform (KAP) and TEFAS (Turkish Electronic Fund Trading Platform)

In funds trading via TEFAS, platform practices and matching rules are valid and applicable.

After opening an investment account in our Bank, you can easily buy or sell participation units of all mutual funds traded in TEFAS via our branches, Internet Banking, Burgan Mobile and Private Banking Line.

Equities and FOE

You may easily carry out your equity and FOE trades through Burgan Securities.

Open an investment account through our branches or internet banking. Start trading by shifting to Burgan Securities via Equity / FOE trades menu both in Burgan Mobile and in internet banking!

Please click for Burgan mobile IOS.
Please click for Burgan mobile Android.
Please click for Burgan Securities website.

Burgan Yatırım Menkul Değerler A.Ş. offers intermediary institution services for your equity and FOE trades

Derivatives

Forward

Forward is a contract of purchase or sale of an asset of a certain quantity at a predetermined price on a certain due date. The parties to forward contract are under obligation to settle the transaction at the end of maturity, regardless of the then-current prices. Basically it is a contract signed in order to fix the price of a financial asset of the future as of today. It is an instrument which may be used by investors wishing to protect themselves against changes and fluctuations in prices of underlying assets or wishing to make profit out of such changes and fluctuations. It is traded in over-the-counter markets.

Swap

FX Swap: It is a contract wherein the parties mutually agree to exchange a principal sum in two separate currencies for a certain period. It is a financial instrument which is developed against exchange rate and interest rate risks and which allows fund users to have access to appropriate funds available in different markets and to make use of such funds under appropriate conditions. FX Swap is a method used so as to regulate the cash flow. It does not lead to any change of position for either of the sides as the transaction executed today is counterbalanced by a reverse transaction at the end of maturity.

Interest Swap: It means exchange of interest payments of the same currency between two sides within the predetermined time intervals. Interest amounts to be paid are determined according to the previously agreed upon principal and interest amounts. Principal sum is not exchanged in interest swaps.

Option

Option is an investment instrument allowing its holder to purchase and sell an underlying asset of a certain quantity, such as commodities, currencies, securities, interest and indices, at a fixed price at the end of a predetermined time. Option buyer has the right to use the option contract purchased against a certain amount of premiums within or at the end of a certain period of time determined in the contract. Option holder is not, however, obliged to use the option at the end of maturity. Maximum loss of option buyer is the premium it pays. Option seller, on the other hand, gains and derives a premium income.

Bills and Bonds

Treasury Notes & State Bonds

Treasury Notes are government debt securities issued by the Treasury of the Republic of Turkey in Turkish Lira or foreign currencies with a maturity of shorter than one year, while State Bonds are government debt securities issued by the Treasury of the Republic of Turkey in Turkish Lira or foreign currencies with a maturity of one year or more.

Treasury Notes are sold with discount, and its return payable at the end of maturity is known beforehand. State Bonds may be with discount or coupon payments. Coupon Bonds may be issued with fixed or variable coupon interests. If you hold both of these notes until the end of maturity, payment of the principal sum and interests to you is under guarantee of the Treasury of the Republic of Turkey.

Eurobond

Eurobond is a type of coupon bond issued generally as bearer bonds by governments or corporations in a currency, other than TL, simultaneously in several countries via a bank or a syndicate of banks or through an international consortium.

Eurobond maturity is generally between 5 and 30 years. Eurobond coupon payment frequency may be 6 or 12 months, and in general, USD Eurobonds are issued with semi-annual coupon payments, while EURO Eurobonds are issued with annual coupon payments. Coupon interest rates may be variable, but are generally fixed. Eurobonds are not physically delivered. In secondary market, they are traded with “date of transaction + 2 business days” value date. Trades are mostly settled via foreign custodian (settlement and clearing) banks. Eurobonds of our customers are kept in Euroclear in the name of Burgan Bank, and in our Bank in the name of our customer. It is fit and convenient for investors thinking to invest their savings in foreign currency in long-term.