Identifier: C5T3L3 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to compare fund, debt and derivative net returns under explicit dated assumptions. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Compare fund, debt and derivative net returns under explicit dated assumptions; Separate legal income categories and acquisition-sensitive rules; Avoid importing a foreign or fund tax treatment into another route.

Prerequisite: C5T3L2; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A shared economic exposure does not imply a shared tax category. A domestic fund redemption, direct debt coupon/disposal and derivative settlement are legally different events. A domestic wrapper holding foreign assets is not automatically the same investor-level tax route as directly receiving foreign income. The actual result can depend on acquisition date, instrument classification, residence and whether the investor operates a business.

The GIB guides separate categories and date-sensitive treatment. This lesson compares fictional schedules so arithmetic remains reproducible without asserting live rates. All figures must be replaced by verified effective rules before a real net ranking.

Price and return drivers

For each route write gross return components, embedded and investor-level expenses, taxable base, collection method and cash date. Compute net amounts on the same starting capital and horizon. If an unrealized value is used for one product, do not compare it with realized after-tax cash from another without stating the mismatch.

Worked case

Hypothetical Turkey-resident nonbusiness individual, 2026 income year, all acquisitions 2 January 2026 and exits 30 September 2026; fictional schedule effective 1 January 2026. Each route starts TRY 100,000. Fund unit gain TRY 10,000 already includes internal expenses; investor charge TRY 200; fictional 20% tax on the gross unit gain TRY 2,000 gives net TRY 7,800. Debt coupon TRY 6,000 plus price gain TRY 4,000, charges TRY 500; fictional 10% final tax on coupon only TRY 600 and no price-gain tax under this invented schedule give net TRY 8,900. Derivative gross TRY 10,000, execution TRY 600 and funding TRY 1,400; fictional zero tax gives net TRY 8,000. Ranking is debt, derivative, fund for this supplied schedule alone.

Adverse case

If the fictional derivative schedule instead taxes its supplied net taxable gain TRY 8,000 at 25%, tax is TRY 2,000 and net TRY 6,000, reversing its comparison with the fund. A direct foreign coupon with withholding in its source country may require residence-country analysis and credit evidence; it cannot simply inherit this invented zero-derivative rule or fund schedule. Currency gains can also differ between economic reporting and a legally defined taxable base.

Practical use

For actual use record exact product identity, acquisition batches, source jurisdiction, income year, investor residence/status and rule effective dates. Check GIB and subsequent legal amendments; retain a distinct missing-data list when treatment is unresolved. Include declaration payment dates in liquidity planning and avoid double-deducting fund expenses already reflected in unit prices. No actual threshold or real 2026 rate is supplied here.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Use the table to test whether a net advantage survives different lawful classifications and costs. Do not choose a product solely because a fictional row says zero. Defer when the actual tax category is material and unresolved; compare a robust baseline rather than fabricate certainty.

Practice and references

Exercise: fictional matched 2026 resident-individual comparison, dates as above. Fund gain TRY 5,000 with TRY 1,000 supplied final tax; debt gain/income TRY 5,500 with TRY 300 charges and TRY 500 supplied final tax. Solution: fund TRY 4,000 net; debt TRY 4,700 net. These results establish arithmetic under the supplied scenario, not actual product tax law.

Takeaway: Avoid importing a foreign or fund tax treatment into another route with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Matched-route net comparison. Glossary: Final withholding, Acquisition batch. Next lesson: C5T3L4. Topic test.

Sources checked 2026-10-26:

Additional product cards: mutual-fund.

Shared reference guide