Identifier: C5T4L1 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to match a product allocation to dated spending and a loss budget. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Match a product allocation to dated spending and a loss budget; Quantify accessible cash separately from marked portfolio wealth; Reject a plan that needs unavailable redemption cash.

Prerequisite: C5T3L4; 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

Portfolio construction starts with obligations and constraints. State payment amounts, deadlines, minimum reserve, acceptable economic loss and who can authorize transactions. Classify assets by when proceeds can become transferable cash under normal and stressed operations. A product with a short expected holding period may still have redemption cutoffs or an uncertain exit price.

Use a baseline first: cash reserved for essential payments, then optional risk exposure. A risk budget is a limit chosen for the case, not a market law. Allocating to a fund does not guarantee its settlement date or value; use its supplied documents and stress assumptions.

Price and return drivers

For a simple one-driver scenario, allowable risk-asset value = loss budget / assumed adverse percentage loss, before other costs and interactions. Liquidity coverage must be assessed separately by date. Do not spend the same reserve once on a household payment and again on a margin call.

Worked case

Hypothetical TRY 1,000,000 portfolio, payments TRY 300,000 at day 30 and TRY 100,000 at day 60, protected operating reserve at least TRY 90,000, market-loss budget TRY 80,000. Supplied equity stress is −20%, so equity cap is TRY 400,000. Candidate allocation: bank cash TRY 100,000, fund TRY 300,000 with supplied normal T+1 cash, bill TRY 200,000 maturing day 20 and equity TRY 400,000. Paid allocation charges TRY 1,000 come from bank cash, leaving TRY 99,000. Day-30 payment can use matured bill TRY 200,000 and planned fund cash TRY 100,000; day-60 payment another TRY 100,000 from the fund. Bank TRY 99,000 and residual fund TRY 100,000 remain, before returns and tax. The equity shock loses TRY 80,000; including the paid charge makes total economic loss TRY 81,000, so a strict all-cost TRY 80,000 limit would require reducing equity to TRY 395,000.

Adverse case

If a day-29 redemption unexpectedly becomes T+3, its TRY 100,000 cannot fund day 30. Bill cash TRY 200,000 plus only TRY 9,000 bank cash above the protected reserve gives TRY 209,000, leaving TRY 91,000 funding gap. Total wealth is not the cure. Plan the instruction earlier under the supplied stress, retain more immediate cash or resize the allocation. Higher expected fund return does not compensate a fixed payment default.

Practical use

Read dealing, maturity and cash availability in the actual product documents. Verify investor access, purchase cutoffs, settlement holidays and custody/transfer restrictions. Include costs and any tax reserve in the objective before solving allocation size. The T+1/T+3 dates and stress in this example are hypothetical; no live fund or bill terms are asserted.

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 reduced TRY 395,000 equity amount if the stated loss budget includes all costs, with the released TRY 5,000 kept liquid. A precise allocation must satisfy both the loss boundary and dated payments. Decline the risk position if essential spending depends on a favorable exit or unsupported redemption promise.

Practice and references

Exercise: hypothetical total TRY 600,000, payments/reserve requiring TRY 350,000 accessible, all-cost loss limit TRY 40,000, risk-asset stress 25%, charges TRY 1,000. Solution: risk cap (40,000 − 1,000)/0.25 = TRY 156,000; liquid remainder before charges TRY 444,000, after charges TRY 443,000. Both constraints pass under the supplied availability assumptions.

Takeaway: Reject a plan that needs unavailable redemption cash with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Simple all-cost risk allocation cap. Glossary: Risk budget, Liquidity coverage. Next lesson: C5T4L2. Topic test.

Sources checked 2026-10-26:

Additional product cards: mutual-fund.

Shared reference guide