Types of Mutual Funds – Active and Passive

Active Mutual Funds

Traditional Fund – A fund managed by an investment manager who makes decisions on the management of investments, aiming to maximize profits through investments in the capital market. The manager operates using financial instruments on behalf of the fund in accordance with its investment policy and the fund manager’s procedures.

Money Market Fund – A mutual fund that invests in low-risk assets such as short-term government bonds (MAKAM), short-term state bonds, short-term deposits, etc. The average duration of all assets held in a money market fund does not exceed 90 days. Money market funds are considered low-risk and serve as an alternative to bank deposits.

Hedge Fund in Trust – A regulated investment product launched in 2023, aimed at operating with various trading strategies and a range of investment tools, including leverage, short selling, options and derivatives, financial hedging instruments, and other tools. In most cases, this is done to attempt to achieve higher than market returns in all market conditions, including volatile market environments. 

Passive Mutual Funds

Open Tracking Fund – A mutual fund whose objective is to achieve results as close as possible to the rate of change in a specific index. The fund aims to match the index’s return but does not guarantee it.

Exchange-Traded Fund (ETF) – An ETF is essentially a closed tracking fund traded on the stock exchange. Units of the fund can be bought and sold during the trading day on the exchange, In addition, units can be bought or sold at the end of the trading day, as with an pro