What is a Mutual Fund? What benefits does it offer?
Mutual fund is a trust that pools together the savings collected from the public in exchange for participation certificates, in a portfolio of capital market instruments, real estate, gold and other precious metals, which is managed on behalf of the certificate holders based on fiduciary ownership and risk diversification principles.
- As in all over the world, there are increasingly more investment alternatives available in Turkey as well. Determining the type of investment that would best suit one's expectations and needs, following economic developments on a daily basis and switching to different instruments when necessary, and keeping track of the duration for exercising preemptive rights require a great deal of time and expertise. Therefore mutual funds which are managed by professional managers are the most suitable instruments that take this burden out of the investors' hands.
- Although the fund has no legal entity, the assets of the fund are separate from the founder's assets. Additionally, in accordance with the Capital Markets Law, the assets of the fund cannot be pledged, put up as collateral and be levied by third parties. Scilicet, the protection of the fund's assets are secured by law.
- Minimizing the risk is possible by diversifying the portfolio with different investment instruments such as fixed income securities, foreign currency indexed securities and stocks.
Provides the opportunity to invest in securities with high income potential which would not be possible with small savings.
- Information regarding the fund prices can be reached through newspapers, internet and other alternative channels.
- As the evaluation and control of the funds and the collection of coupons, interest and dividends will be carried out by the fund management, the fund investors do not have to keep track of these procedures which require time and resources.
- They can be bought and sold in small amounts.
Value appreciation /depreciation that occur in the fund portfolio is reflected in the value of the portfolio on a daily basis.
Garanti Bank Type B Fixed Income Bond provides a long-term and fixed income investment opportunity.