What are the criteria for choosing the appropriate investment fund in Türkiye?

In the search for the most suitable investment fund to invest through in Turkey, some many criteria and factors guide us to our goals, and by taking them into account, we can ensure that the desired investment goals are achieved in the best way.

In this article, we will address the most important points of differentiation between different funds, with a detailed explanation of each of the criteria that are the subject of our research, in addition to a host of other important information that is indispensable for the researcher looking for encouraging investment options in the field of mutual funds:

Financial goals

The research journey should begin with a comparison of the different financial objectives of different funds, and the investor should take into account their need for investment and the financial objectives that are appropriate for them within those results.

Mutual funds typically exhibit different financial results. Some are known for their stable income, such as real estate funds, which often have stable income-producing assets.

Others, such as equity and startup funds, are known for their long-term earnings growth, which establishes long-term profits.

Accordingly, the investor should organize his financial plans accordingly, and choose the right fund for him and his aspirations.

Risk level

It is well known that investment risks vary between types of investments, often significantly, and sometimes to a lesser extent, and this is also an important factor to consider before making any investment.

Bond funds, for example, despite their attractive returns, the possibility of losing the entire capital makes investing in them risky.

In real estate funds, the risk levels are often reduced to safe limits, making it one of the most reliable investment funds.

By determining an investor's ability to withstand market fluctuations and losing a portion of their investment, an appropriate decision can be made.

Historical performance

A fund's historical performance can be a mirror of how well it is managed, and while this is not a sufficient guarantee for fund selection, it is an important indicator that should not be overlooked.

It is important to compare the performance of funds with similar investment orientations while checking the fund's ability to achieve the same returns over the long term.

Fees and costs

It is also important to know the fees and expenses charged by the fund, as well as the transaction fees that some funds charge for buying and selling, as these expenses will ultimately burden the profits, so it is important to make sure that you understand all the costs associated with the fund, and make a trade-off between funds accordingly.

Liquidity

Large funds are characterized by their high liquidity, due to the large capital they possess and the large number of investors they have been able to attract, which will enable you to monetize the capital when needed, with fair prices when you want to buy or sell units in the fund.

How to research and compare mutual funds?

Through the above-mentioned points, we have drawn the most important milestones for those interested in choosing an investment fund, and the most important points of differentiation between funds in general, and it remains for the investor to arrange his cards accordingly.

If the investor determines the level of risk he can tolerate and knows his long, short, and medium-term investment goals, he can prioritize his priorities accordingly.

He then proceeds to gather information about the funds that have captured his interest by reading their prospectuses, which usually contain detailed information about the fund's performance, investment strategy, fees and expenses, and risks. It is also important to read analysts' analyses about the activities of the funds and benefit from their opinions, and to seek the help of a financial expert who will give you advice that is appropriate to your situation and circumstances.

The comparison between all the funds can be summarized as follows:

• Historical performance, by comparing the performance of the funds to the results they delivered in previous investment cycles.
• Expenses and expenses incurred, and the percentage of savings between one fund's expenses and another.
• The diversification of the investment portfolio to minimize risk.
• The fund's investment policy, growth plans, and investment selection strategies.
• The fund manager's experience and track record in the investment sector.
• By arbitraging between these points, it is possible to reach more informed conclusions, and then choose an investment fund accordingly.

The importance of using financial advisors

Financial advisors usually have a treasury of important advice and information, due to their specialization, experience, news updates, and knowledge of market fluctuations, so using an expert advisor will help you clarify the vision for your next investment.

Moreover, independent financial advisors will often provide impartial investment advice, which will save the investor effort, time, and money, while providing answers to investment mysteries and analyses that are not easily accessible.

Let Oragon's experts help you choose the perfect investment fund

The task of choosing the right investment fund for your financial ability and investment vision is a task that requires more insight, vision, and experience, so it is useful to benefit from the opinions of investment experts who can recommend the right option for you.

Through its free advisory services, expert management team, and experienced advisory staff, Oragon offers the most important investment advice for anyone wishing to invest in the field of investment funds, with a full explanation of our advanced services in the field of fund management and establishment, and many other important and appropriate information and advice for your specific cases.

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