Yatırımcı.AI

Equity fund

An equity fund is a high-risk, high-potential fund investing at least 80% of its portfolio in stocks traded on Borsa Istanbul. Funds under the equity umbrella let investors hold a professionally managed, diversified stock portfolio instead of picking stocks one by one.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • Equity-intensive funds (at least 80% BIST stocks) benefit from a withholding tax advantage.
  • Equity fund performance should be compared with BIST 100 or the fund’s benchmark; return above the index is called alpha.
  • sharp short-term losses are possible; a 5+ year horizon is needed.

Formula / calculation

the price is announced the next day (T+1 pricing) and trades settle at T+2. The fund’s return is the weighted return of its holdings minus the management fee. Yatırımcı.AI shows fund stock breakdowns and the stocks most held by funds.

Interpretation

Equity fund performance should be compared with BIST 100 or the fund’s benchmark; return above the index is called alpha. It is the core tool for investors targeting returns above inflation over the long term.

Pitfalls

sharp short-term losses are possible; a 5+ year horizon is needed. High management fees can wipe out alpha. Even if the fund name carries a theme such as "dividend" or "technology", holdings should be verified in the prospectus.

Pages where this term appears

Related terms

Frequently asked questions

An equity fund is a high-risk, high-potential fund investing at least 80% of its portfolio in stocks traded on Borsa Istanbul.

the price is announced the next day (T+1 pricing) and trades settle at T+2. The fund’s return is the weighted return of its holdings minus the management fee. Yatırımcı.AI shows fund stock breakdowns and the stocks most held by funds.

Yatırımcı.AI ResearchMethodology