Time for fund trade with one account
With the decision of Capital Markets Board in early March, investors will be able to reach and trade all funds with one single bank account with the new fund platform, which is to take effect as of July 1st.
Turkey Electronic Fund Distribution Platform, which came into effect three years ago as a trade platform aiming to give investors the opportunity for a common trade platform, will be in service with new content. With the platform, an investor with an account on any brokerage will be able to trade funds of different institutions. Infrastructure of the platform will be founded by Takasbank. Currently, investors who have an investment account can only trade funds of the institutions that the account belongs to or the funds of the institutions that have an agreement with the brokerage.
In most of the developed countries the size of the investment fund market is about % 50 of the GDP but in Turkey it is just % 3. The most important reason is that the investment fund market is not open to competition. Takasbank and Capital Markets Board worked together to contribute the widening of the funds and enabling investors to trade funds from one trade platform. The legal framework is ready. With CMB's decision, competitive environment in the fund industry and the performance of the funds are targeted to be improved. Platform will give investors alternatives and ability to choose without extra cost.
Account costs are lifted
CEO of Takasbank Murat Ulus said that the most important service to be provided by the fund will be the ability to trade all funds from one account without the necessity to open different accounts and with the platform the cost of opening different accounts will be lifted. In the coming periods we will integrate the platform to international platforms and make it possible for people living abroad to trade the funds within the platform. Said Ulus.
Capital guaranteed funds, private funds, free funds, property investment funds and venture funds will not be on the platform. Money market funds and short term bond funds can be included with the request of the founder. The platform is one of the significant founding stone of the Istanbul financial Center Project. Incomes of the institutional investor will be improved. Investors will be able to trade on the Takasbank Fund Platform without changing banks or accounts. Fund market will be opened to competition. said Chairman of CMB Vahdettin Ertaş.
Investors will make analysis on their own
CEO of İş Portfolio Tevfik Eraslan said that the obstacle for distribution network between the funds and and investor will be removed and that platform is a significant advantage for portfolio management companies because it will be a financial supermarket. Eraslan pointed out some technical difficulties for investment institutions. The fund platforms abroad compete to have the best funds with fund selection teams. It will be a disadvantage for investors making this analysis on their own. said Eraslan.
Pınar Çelik Nacar