Are investment funds in Türkiye feasible?
Talking about the feasibility of investing in Turkish investment funds depends on a number of factors that will take us on a clear path to answer this question. Investment funds are managed according to different strategies from one fund to another, and the performance of the assets in which the funds invest will naturally also differ, in addition to many related factors. The current state and nature of the market, and other circumstances surrounding the investment.
It is known that Turkey provides investors wishing to invest through investment funds with various opportunities within various types of investable assets, such as stock, bond, and real estate funds. As a result, not all investment funds are at the same level of success. It is natural that efforts, results, opportunities, and types of investment vary, as some achieve high profits, while others perform less than that.
However, it is very important for the investor to carefully search for the fund that is compatible with his aspirations, goals, ability to bear risks, the time horizon for the investment to achieve its desired goals, and the current economic conditions, in addition to reviewing the finest details before making the decision to contribute to a specific fund.
What are the most important opportunities for Turkish investment funds?
The investment opportunities that push investors to experience profit and growth with their capital through Turkish investment funds are represented in a number of points that always attract new investors. Among the most important opportunities offered by investment funds in Turkey are:
1. Growth of the Turkish economy
Indicators of the Turkish economy during recent and current years speak of rapid growth witnessed by many economic sectors in Turkey, driven by the features of the Turkish market and its components, such as the abundance of labor, production intensity, and relatively low costs, and Turkey’s mediation in the most vibrant regions of the world, between the continents of Europe and Asia and facing the northern shores of East Africa, making it an important economic destination and an alternative to the Chinese market in some areas.
In the field of tourism, which constitutes the locomotive of the Turkish economy, Turkey is considered a tourist country par excellence, and the tourism, hotel, resorts and other tourism services industry flourishes in Turkey. There are other growth factors in other areas, such as the boom in the real estate sector and real estate investment.
In terms of numbers, the Turkish economy achieved growth of 5.9% in the third quarter of 2023, according to official data from the Turkish Statistics Authority, which exceeded expectations. The Turkish economy also maintained its high growth performance for 13 consecutive quarters, with the gross domestic product rising continuously. The Turkish economy was also able to rank third among the highest growing economies in the G20.
2. Organizational improvements
Turkey always seeks to improve and regulate the operation of investment funds, by enacting constantly renewed laws that guarantee the preservation of the rights of investors and unit owners in those funds, and aims to raise standards of efficiency and transparency, according to strict standards.
3. Active labor market
The Turkish labor markets are ambitious and abundant in labor, given the population with a high proportion of young people, in addition to the availability of a good level of education among individuals. Because of Turkey's continuous support and development of the compulsory education sector in the country until the end of the preparatory stage, as well as with the focus on education and training that keeps pace with the development of the times and the needs of the labor market.
4. Increased foreign interest in the Turkish market
Foreign investors are attracted to the Turkish markets, regardless of their sectors, by a set of factors that are concentrated in:
The country's political stability, economic growth in many areas, and investment incentives provided by the state to investors in the investment funds sector, which amount to zero taxes in some cases, with the openness of Turkish financial and business markets to foreign investments.
5. Investing in technology and innovation
Today, Turkey is experiencing an exceptional shift in keeping pace with modern technology in its various industries and products, whether in the field of energy, or military industries, drones and warplanes, smart phones and computers, daily life technologies, industrial equipment, machines and production lines, as well as various household products, as well as various household products, Turkish products invaded many European markets thanks to their merit and good performance.
The most important challenges facing investment funds in Türkiye
On the other hand, investment funds in Turkey also face a number of challenges, which must be talked about in the context of their fair description, the most important of which are:
1. Regulatory and bureaucratic constraints
This is a natural defect that affects many businesses, even in many countries of the developed world. In fact, some regulatory restrictions are often aimed at preserving investors’ rights and government oversight of funds.
2. Inflation
Over the past several years, Turkey has suffered from the effects of global inflation that affected various sectors of life, especially after the period of global closures associated with the Corona epidemic crisis, in addition to some other reasons that led to a decline in the exchange rate of the Turkish lira. However, the ongoing government measures and decisions taken prevented citizens and investors from falling Victim of inflation.
The current government also promises to reduce inflation in local markets to single digits, and the effects of successive steps in this regard have begun to become clear.
3. Exchange rate volatility
Likewise, the decline in the exchange rate of currencies is one of the matters that concerns investors in Turkey in general, and therefore the policy of hedging with stable currencies is considered one of the exits that investors may resort to, in addition to many steps that fund managers realize the importance of in these situations.
4. Political fluctuations
It is natural for investors to be interested in placing their investments away from the political unrest that will affect most investments in that country. In fact, the relative political stability in Turkey is what attracted more foreign investments from abroad, but the obsession with change remains among many, despite the long state of stability that Turkey has experienced, especially after the failed coup attempt in 2016, which helped provide strong immunity. With the consolidation of the rule of law.
Oragon Company services in establishing and managing investment funds in Türkiye
Oragon Company is one of the Imtilak Investment Group companies, and its arm specializes in establishing and managing investment funds in Turkey. Oragon offers a wide range of leading and advanced services regarding investment funds, the most important of which are:
- Establishing investment funds: Oragon assists its clients in establishing investment funds, through its licensing and experience in this field, while facilitating the preparation of legal documents and official approvals.
- Investment fund management: The company provides comprehensive management services for investment funds, including selecting appropriate assets for investment, especially in the field of real estate investment, according to integrated, convenient and safe work mechanisms. These funds are supervised by an elite group of specialists and professionals with a rich resume of achievements.
- Providing free consultations: Oragon provides its clients and interested parties in general with full financial and investment consultations that help them understand the market better.
- Performance reports: At Oragon, we provide our clients with periodic performance reports on the performance of our various funds, which helps them monitor the performance of their investments and make their future decisions.
Edited by Oragon Company ©
