What do you know about investment funds in Türkiye
What do you know about investment funds in Türkiye

Obtaining an account in the investment fund in Türkiye opens many doors for you and guarantees you many advantages. Starting from, obtaining Turkish citizenship by registering in one of the types of Turkish investment funds.

you should know the concept of investment funds, which means several mutual funds in which sums of money are placed by investors and can be easily recovered.

We will read in the following article about the following points:

  • Definition of investment fund in Türkiye.
  • How to create an investment fund in Türkiye.
  • Conditional commitment period to hold the investment fund.
  • Objectives of investment funds in Türkiye.
  • Is it really profitable to invest in mutual funds?
  • Investment restrictions in Türkiye.
  •  Obtaining tax exemption through the investment fund in Türkiye.
  • Types of investment in the investment fund in Türkiye.
  • Advantages of real estate investment funds.
  •  Requirements for subscribing to the investment fund in Türkiye.

How is the investment fund defined in Türkiye?

It is the place where the financial portfolio is placed, which occupies an important position in the money market. The procedures for buying and selling mutual funds are for investors whose savings are evaluated through the purchase of mutual funds. That is, the investment process is a process in which savings are reinvested by distributing them to the common capital markets.

How is the investment fund established in Türkiye?

The different types of investment funds depend on the same registration and subscription steps:

  • Obtaining the approval of the Capital Markets Board of Türkiye (CMB).
  • Creation of the fund by the company to be established on the basis of being a public company.
  • Drafting a set of documents containing internal regulations.
  • Documents will be submitted with the commercial registry in order to obtain approval.
  • The depository person keeps the assets of the fund.
  • When the company is registered in the Turkish Companies Register, an agreement is concluded with a depository recognized by CMB.

What is the conditional commitment period?

In Türkiye, the investment fund system mandates that investors hold onto their investment funds for a minimum of three years before they can sell them.

What are the most important objectives of investment funds in Türkiye?

The primary objective for investors when registering with an investment fund is to achieve a high return on their investment through the purchase of common stocks. Investing in mutual funds is also an ideal option for those seeking medium to long-term investments. Ultimately, the goal of investing in these funds is to maximize returns while mitigating risk and adhering to regulatory requirements.

Is it profitable to invest in mutual funds?

There are various ways to reap profits and obtain good gains, but investing through an investment fund in Türkiye is one of the best ways through which to obtain satisfactory profits compared to the benefits and advantages that the investor obtains.

What are the investment restrictions in Türkiye?

Despite the flexibility of investment funds in Türkiye, the Turkish constitution imposes some restrictions, namely:

  • The investor is not entitled to invest more than 10% of his money in one company.
  • The company is not entitled to invest more than 9% of the company’s capital.
  • The company is not entitled to invest more than 9% of the voting shares.
  • It is not possible to invest more than 20% of the subsidiary company’s capital by one owner and one manager.

Is it possible to obtain tax exemption through the investment fund in Türkiye?

Some investment funds in Türkiye obtain tax exemption, or in other words, any income that comes from foreign currencies, financial assets, and commodity transactions of investment funds is exempted, taking into account the deduction of fees for services.

Among the most important funds that grant tax exemption are:

  • Venture capital funds.
  • Real estate investment funds.
  • stock funds.
  • Investment funds in precious metals and gold.
  • Obtaining Turkish citizenship through investment funds.

What are the types of investment in the investment fund in Türkiye:

  • Income Funds: Investing in securities with high liquidity, such as bank deposits.
  • Growth funds: They depend on investing in high-quality stocks in order to obtain high profits, and they are long-term investments.

Advantages of real estate investment funds:

  • Various tax exemptions.
  • Immunity of seizure of any real estate within the investment funds.
  • Ease of division of hereditary affairs.
  • Facilitating the transactions of foreign investors.

What are the requirements for subscribing to the investment fund in Türkiye?

  • Foreign securities are not allowed to be traded on the Turkish Stock Exchange.
  • A foreign investment company can trade private shares in the local Turkish market.
  • Submitting an offer through the mediation of a specialized Turkish agency.

What are the laws for opening an investment fund in Türkiye?

In Türkiye, there are many investment funds that are governed by a set of laws, namely:

  • Principles related to the mutual fund.
  • Principles related to mutual funds.
  • Principles related to buying and selling a mutual fund.
  • Principles related to the establishment of contracting funds

How can Turkish citizenship be obtained by investment funds?

Investing in investment funds is one of the conditions for obtaining Turkish citizenship, which stipulates the purchase of any type of investment fund for an amount of no less than $500,000 (with a pledge to keep it for at least 3 years). Then the investor benefits from obtaining Turkish citizenship for himself, his wife and children under 18 years old. This method of obtaining Turkish citizenship through real estate investment is characterized by the fact that it is not conditional on other nationalities. It is available to all nationalities. 

Türkiye provides many investment opportunities to attract investors from all over the world. All you have to do is choose one of the types of investment through investment funds in Türkiye. You can then contact the NTL team to get advice from the best investment and nationality experts to provide you with the best proposals that suit your goal.