C1T2L3 · Revised 2026-10-26

Decision and objectives

Practical task: Choose a route for a supplier payment after a weekend

Objectives: Distinguish a money-market fund unit from a bank balance; Map product-specific dealing terms to a cash deadline; Compare net cash under a supplied cost schedule.

Required prior knowledge: C1T2L2. 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.

A money-market fund invests in short-dated instruments under its mandate. It is a portfolio claim rather than a bank balance. Short maturities can reduce some price sensitivity, yet credit, liquidity and operational risks remain. The cash question is therefore twofold: what value can the units realize, and when can that value reach the payment account?

Mechanics

A bank account records money owed by the bank under its terms. A money-market fund records units whose price reflects portfolio valuation and fund expenses. Buying the fund through a bank does not turn it into that bank's insured deposit. A distributor may offer particular out-of-hours services, but their availability is a service term to verify, not a universal property of the fund category.

Read order windows, price determination, purchase settlement, redemption settlement, holiday treatment and exceptions separately. TI1's September 2026 prospectus is an instructive actual example because its dealing section is more specific than the words “daily dealing.” Its schedule must not be copied onto another fund.

Price and return drivers

For a fixed number of units, redemption value = units × applicable redemption price. Investor-level tax and charges reduce that value. Published unit-price changes already reflect fund-level expenses under their valuation convention, so do not deduct an annual management fee again. Expected daily yield is not a fixed credited interest rate: asset revaluation and expenses can offset accrued income.

Worked case

Hypothetical comparison, TRY 100,000 held for 14 calendar days, payment on the next business morning; all routes are assumed accessible and settle before the deadline unless noted. A deposit earns TRY 1,400 gross, invented tax TRY 140, fee TRY 20: usable cash TRY 101,240. Participation-account realized allocation is TRY 1,350, invented tax TRY 135, fee TRY 20: TRY 101,195. Reverse repo gross interest TRY 1,380, invented tax TRY 138, fee TRY 30: TRY 101,212.

The fictional money-market fund begins at TRY 2.00 and ends at TRY 2.026, already net of fund expenses. 50,000 units redeem for TRY 101,300. Invented tax is 10% of the TRY 1,300 gain, or TRY 130; an investor fee of TRY 10 leaves TRY 101,160. On these supplied terms, deposit cash is highest. This is a full investor-cost comparison, not a ranking of actual Turkish products.

Adverse case

Now the payment requires TRY 101,000 at 09:00 Monday, but the fictional fund's weekend redemption settles Monday afternoon. Despite a TRY 101,160 expected receipt, cash available at 09:00 is zero if no reserve exists; the full TRY 101,000 is unfunded at the deadline. Alternatively, a one-off portfolio credit markdown lowers redemption price to TRY 1.99: 50,000 units produce TRY 99,500 before the TRY 10 fee; under the invented no-tax-on-loss assumption, net is TRY 99,490. The “cash fund” label has not fixed either price or timing.

Practical use

Ordinary domestic access is through the fund's actual distribution channels, potentially TEFAS where the fund is offered, with recorded units and product-specific dealing terms. Confirm the intermediary's withdrawable-cash treatment and transfer deadline. For tax, verify investor residence/status, income year, acquisition date, precise category and effective rule; do not copy a tax line from another fund or an old brochure. A printed example should retain a source snapshot and date for its dealing assumptions. This lesson deliberately uses no actual current cutoff or tax percentage.

Decision boundaries

A money-market fund can fit a reserve segment whose redemption process and loss tolerance are compatible with the liability. An immediately accessible bank balance can be preferable for a same-morning payment even with lower expected return. Keep those segments distinct. Decline a fund purchase when its exit deadline is unknown or when the investor's requirement is a guaranteed cash amount that ordinary portfolio units do not provide.

Practice and references

Exercise: hypothetical 30,000 units bought at TRY 3.00 redeem at TRY 3.045. Expenses are already in prices; investor fee is TRY 15; invented tax is 10% of the gain. Answer: gross redemption TRY 91,350; gain TRY 1,350; tax TRY 135; net cash TRY 91,200; net return 91,200 / 90,000 − 1 = 1.3333%. If settlement is one day after the spending deadline, this profitable result still fails the cash objective.

Takeaway: a short portfolio maturity and a convenient distribution screen do not guarantee immediate cash.

Reference guide: money-market-fund; bank-deposit; repo; participation-account; holding-period-return; cash-availability; money-market-fund; cutoff; redemption. Next: C1T2L4. Topic test.

Sources: SPK Communique III-52.1 — Articles 3–6, 14–15, 24–27; Annexes 2–3; date 2013-07-09; consolidated text lists amendments through 2024-03-01; checked 2026-10-26; Banking Law 5411 original adopted text, TBMM — Article 3 participation-account definition; Articles 63–64 insurance framework; adopted 2005-10-19; published 2005-11-01 (RG 25983 repeated); cited provisions effective on publication; unconsolidated historical text; checked 2026-10-26; Takasbank TEFAS General Description — General description and distribution platform scope; 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; TI1 Investor Information Form attached to KAP notification 1665983 — Pages 1–2: identity; risk profile; expenses; important information; date 2026-09-21; checked 2026-10-26. Source records: sources.json. Check the cited rule dates and confirm current dealing terms before any transaction.

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