Steps for investing in investment funds in Turkey

For investing in mutual funds to achieve its desired investment goals, it is important to follow a clear and thoughtful path that guarantees the precursors to success, with scientific and practical reasons to do so.

Through the paragraphs of this article, we seek to provide a clear and general visualization of the steps of investing in these funds, while talking about the most important tips in this regard.

Understanding investment funds in Türkiye

Before you invest in investment funds, you must know the basics of how funds work, their structure, the laws governing the work, investment risks, successful investment strategies, and the right time to enter the investment, as well as the right time to exit it.

It is known that investment funds have different and diverse specializations and licenses, as the specializations of funds are distributed according to their field of work, including real estate funds, bonds, stocks, commodities, projects... Therefore, it is important to familiarize yourself with the basics of the chosen field to invest in, and the general knowledge of its information.

Before entering any investment fund, it is also important to familiarize yourself with its investment assets, strategic plans, investment risks, and the benefits that the fund can offer, as well as the expenses incurred.

The investor should also read the fund's prospectuses and familiarize themselves with the fund's track record, its failures, and its management team.

Setting financial goals

By defining the investor's financial goals, the search for the right investment fund can be shortened, as some funds generate a stable and stable investment income, while others provide investment results in the short, medium, or long term, depending on the fund's orientation, the type of assets it owns, and the dividend distribution plans.

Determining the level of acceptable risk

For example, startup funds are known for their high investment risk, followed by stock funds, then bond funds, and among the least risky investment funds are real estate investment trusts (REITs): Real Estate Investment Trusts (REITs).

It is important to know the investment risk you are taking, whether it is related to the investment specialty, market, or fund, and to invest according to your ability to withstand the volatility of different markets.

Research and analysis

An investor must have the patience to research and analyze fund data and compare their results to choose the best one.

It is important to look for the fund with the best features, the most efficient management team, and the most successful among its peers with its previous investment results while studying the apparent expenses and what may come later, which usually differ from one fund to another.

Choosing an investment fund

After the previous introductions, such as defining investment goals, estimating the level of financial risk that can be tolerated, studying funds, and comparing their information, we reach the stage of choosing the investment fund we want to contract with to buy investment units.

The fund is chosen per the investor's investment goals and the amount of risk he or she can tolerate. It is okay to diversify into some funds at the same time; instead of investing in one investment fund.

Opening an investment account

The fund will ask you to open an investment account to transfer money to the fund through it, either in a specific bank or brokerage firm and this bank should be chosen according to its service fees and reliability.

This investment account serves as a gateway between you and the fund, through which various account procedures are carried out, such as:

• Depositing funds and transferring the amount you wish to invest from your bank account to your investment account in the fund.
• Buying units of the fund.
• Monitoring the performance of your investments, and selling units when you want to withdraw your money.

 Investment implementation

Then the amount to be invested in the fund is transferred, the units are purchased, and the investment process begins.

After that comes the stage of dividend sharing as agreed upon with the fund and the specific dividend distribution system, until the investment is withdrawn.

An investor in one or some of the funds must regularly read the performance reports issued by the fund's management, compare their results with the investment objectives presented by the fund, and organize their investment papers whenever the need arises.

Based on these reports, the investor can make additional decisions to rebalance his portfolio, such as injecting more money or rearranging his investment allocations as necessary, and if the fund's performance is not satisfactory, you can decide to change the fund or modify the investment strategy.

Hire the financial experts at Oragon

With its extensive experience in the field of investment, Oragon has emerged as one of the most prominent investment fund establishment and management companies in Turkey, especially with its specialized advisory services to help investors choose the right funds to achieve their financial goals.

Through your direct contact with our advisory team or our fund management team, or your direct visit to our headquarters in Istanbul, we guarantee you scientific and reliable consultations free of charge, on all your inquiries and questions, explaining our business plans, our ambitious strategies in managing our diversified investment portfolios, and providing appropriate advice for your specific investment situation.

Edited by Oragon Company ©