Owning a short-term portfolio
A money-market fund gives you units in a portfolio rather than a deposit contract with a fixed maturity. In Türkiye, instruments in this category have at most 184 days remaining to maturity, while the daily weighted average portfolio maturity is at most 45 days. The two limits refer to different things: an individual instrument and the portfolio average. Short maturity does not guarantee a rising unit price or cash withdrawals at any hour. Portfolio composition and dealing terms still matter.
Read income through the unit price
Suppose TRY100,000 buys 50,000 units at TRY2 each. If the price used for the sale is TRY2.02, the gross value is TRY101,000 and the price gain is TRY1,000. This is a hypothetical illustration, not the return of an actual fund; consistent purchase and sale conditions are assumed. Check applicable taxes and separately charged fees to find the net proceeds. Multiplying one daily increase by 365 does not establish a guaranteed annual income: future unit-price changes are unknown.
| Feature | Money-market fund | Term deposit |
|---|---|---|
| Income | Change in unit price | Contractual rate and term |
| Access to cash | Fund and distributor dealing terms | Maturity and early withdrawal terms |
| Risk | Underlying instruments and liquidity | Bank and account terms |
| Net amount | Applicable sale taxes and charges | Applicable withholding and charges |
Match the period when comparing deposits
A fund’s trailing monthly return is an observed historical result. A bank’s quoted annual deposit rate expresses an offer for a specified term. Directly comparing the two percentages is misleading. Use the same principal and holding period, then compare amounts after taxes. Future fund prices are unknown, so a forward-looking calculation must be a scenario. Consider early withdrawal terms on the deposit too: income at maturity and the amount available today can differ.
Lower volatility does not mean no risk
Money-market funds focus on short-term instruments but do not eliminate credit, liquidity or price risk. Fund units should not be treated as bank deposits; deposit protection does not automatically apply to them. Review issuer concentration, disclosed risks and dealing provisions under unusual conditions. A history of small daily gains does not make an occasional loss or access delay irrelevant. For money needed to repay a near-term liability, availability can matter more than the recent return.
What to check before placing an order
Confirm the fund code and currency: similar names can identify different products. Then check dealing hours, the unit price used and when sale proceeds reach the account. Convenience offered through the fund’s own distributor may not be available elsewhere. Read how management expenses affect the unit price and whether separate deductions apply. Historical returns, portfolio composition and dealing terms should be assessed together. One high daily return is insufficient to establish suitability for your cash needs.
Related market pages and tools
Sources and further reading
Numerical examples are illustrative scenarios, not company data, bank offers or current tax rates.
This content is general information and financial education. It is not personalized investment advice or a recommendation to buy or sell.