C1T1L2 · Revised 2026-10-26

Decision and objectives

Practical task: Plan a tuition payment using a deposit and a fund redemption

Objectives: Draw dated investor cash flows; Identify settlement and payment counterparties; Calculate a funding shortfall at the spending date.

Required prior knowledge: C1T1L1. Classification: domestic. Revision: 2026-10-26. All fictional names, prices, rates, fees, calendars and tax schedules below are hypothetical unless explicitly identified as a dated document observation.

An investment can show a gain while failing to pay a bill. The relevant output is usable cash in the required account before the payment deadline. Build the timeline from the liability backward: payment instruction time, bank transfer time, settlement credit, price determination and order deadline. A market day, a business day and a calendar day are not interchangeable.

Mechanics

Use a signed ledger from the investor's perspective: cash paid is negative, cash received is positive. Separate order submission, trade or pricing, and settlement. An accepted redemption request is an instruction; a valuation mark is an estimate; a credited bank balance is potentially spendable cash. Identify the fund founder/manager, distributor, custodian, clearing infrastructure and receiving bank by role. Different organizations can perform more than one role, but shared branding does not merge their obligations.

Record unresolved timing as a condition, not as “instant.” An account screen may show sale proceeds that are reusable for trading but not yet withdrawable. The settlement rules and intermediary agreement determine that distinction.

Price and return drivers

The running cash balance equals opening accessible cash plus settled receipts minus settled payments and fees. Include committed future payments even when no debit has occurred yet. Expected return affects the amount; the processing calendar affects whether it exists in the correct place on time. For a fixed deadline, a late larger receipt may be less useful than an earlier smaller one. Do not discount away an actual liquidity gap without identifying a real funding source and its cost.

Worked case

Hypothetical case: a TRY 120,000 tuition bill must be paid on business day D4 before noon. Opening bank cash is TRY 20,000. A deposit pays TRY 50,500 on D3. A fund redemption instruction placed before its fictional D1 cutoff is priced on D1 and credits TRY 50,200 on D3. A transfer fee of TRY 100 is paid on D4. No holidays occur; all receipts are withdrawable before the D4 instruction. Available cash = 20,000 + 50,500 + 50,200 − 100 = TRY 120,600. After tuition, TRY 600 remains.

The fund's market return is not the timeline's guarantee. This plan only works if its supplied dealing and transfer assumptions are confirmed. The deposit payer is the bank; the redemption is processed under the fund/distributor terms; the tuition recipient is a separate counterparty.

Adverse case

The investor misses the fictional fund cutoff. The same redemption now settles on D5. D4 available cash becomes 20,000 + 50,500 − 100 = TRY 70,400, leaving a TRY 49,600 tuition shortfall. The fund may still be worth TRY 50,200 on a screen, but that does not cure the deadline. A hypothetical emergency loan charging TRY 750 would consume the original TRY 600 cushion and leave an additional TRY 150 cost. A backup is useful only if its approval, drawdown time and amount are reliable.

Practical use

A Turkish fund order is routed through its actual authorized distribution channel; not every fund uses the same platform or same dealing schedule. Read its prospectus's dealing section and current notices, then the distributor's earlier operational deadline if any. The TI1 prospectus is a dated example of detailed, fund-specific processing rules; it is not the fictional D1/D3 calendar. Include transfer charges, redemption charges, embedded expenses and investor tax deductions as separate ledger entries. Income year, residency/status, acquisition date and rule effective date must be established before converting a gross redemption estimate to an actual tax-net receipt.

Decision boundaries

A cash timeline fits liabilities with defined dates. It fails when contingent receipts are silently treated as committed cash or when a holiday calendar is guessed. Keep an operational buffer appropriate to the consequence of delay. For a must-pay bill with no backup, decline a product whose earliest reliable withdrawal falls after the deadline even if its forecast return is higher. Timeline certainty does not eliminate issuer or bank failure risk.

Practice and references

Exercise: a hypothetical rent payment of TRY 72,000 is due on D3. Bank cash is TRY 12,000; TRY 35,000 settles on D2; a second TRY 27,000 receipt settles on D4; payment fee is TRY 50. Answer: cash by D3 is 12,000 + 35,000 − 50 = TRY 46,950; shortfall is 72,000 − 46,950 = TRY 25,050. Bringing the second receipt forward to D2 would leave TRY 1,950 after rent. Explain which document and intermediary confirmation would support that change; an expected price gain alone would not.

Takeaway: order accepted, asset valued and cash available are three different events.

Reference guide: bank-deposit; mutual-fund; cash-availability; settlement-date; liquidity; counterparty. Next: C1T1L3. Topic test.

Sources: Takasbank TEFAS General Description — General description and distribution platform scope; date not stated; retrieved 2026-10-26; checked 2026-10-26; MKK TEFAS Platform — Fund-unit transfers through MKK–Takasbank integration; date not stated; retrieved 2026-10-26; checked 2026-10-26; TI1 prospectus attached to KAP notification 1662920 — Sections I–III; IV asset separation; V valuation; VI dealing; VII expenses; VIII taxation; IX disclosure; date 2026-09-15 notification; checked 2026-10-26. Source records: sources.json. Check the cited rule dates and confirm current dealing terms before any transaction.

Shared reference guide