Capital Protection Funds

What is a Capital Protection Fund?

Funds established as an umbrella fund, that provide returns at various terms of maturity, based on a guarantee that the investor will be returned some or all of the initial investment or a specific capital gain, and led by an appropriate strategy on a best efforts basis, are called Capital Protection Funds.

The purpose of Capital Protection Funds is to return the whole of the investor's capital on maturity, while also securing returns based on underlying assets through a stock option obtained outside of the market. They comprise treasury bills, government bonds, reverse repos, and purchase options arranged by means of investment financial indicators and instruments of the capital market.

Advantages / Features

• Capital protection limits risk to your portfolio.
• By-products provide an alternate source of income.
• Portfolio diversification creates opportunities for investment in different investment instruments.
• Usually has a term of at least 6 months.
• Capital protection is only guaranteed for investors who do not withdraw their funds before maturation.

Factors Differentiating Capital Protection Funds from Other Funds

Purchase / Sale Fundamentals

• Prices announced on the 7th and 21st of each month (or if a public holiday, on the first subsequent working day)
• Sale transactions take place in specific periods through public offering
• Orders received during public offering are realized through Reverse Repo.
• Entry to the fund is not possible after the end of the public offering period.
• Orders made during the public offering may be canceled by 5:00 p.m. on the last day of the public offering.
• Refunds requested before 5:00 p.m. on the day before the price is announced are refunded according to the price announced, three working days after the price announcement (T+3).

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