In the automatic participation system, pension companies offer interest and no-interest fund choices to their employees. The funds offered vary depending on the period that your certificate has remained in the system.
| Fund Presentation Period | Accumulation Investment Funds |
|---|---|
| For the duration of the initial period (Plan entry notice + 2 months) |
Initial fund |
| End of initial period + 10 months | If employee does not make a choice Initial fund If employee makes a choice standard fund or other funds |
| Plan entry notice + 1 year | If employee does not make a choice standard fund If employee makes a choice Initial fund or other funds |
No-interest IPS funds
The personal pension system provides pension mutual funds that are invested in no-interest instruments and are compliant with the Islamic finance rules and the participation banking principles for participants who are conscious about interest.
These no-interest funds are invested in the instruments that are approved by the relevant pension company’s Advisory Board, are deemed permissible in accordance with Islam, and are appropriate for no-interest and participation banking principles.
Financial instruments of no-interest pension mutual funds may briefly contain the following:
- Participation accounts in Turkish lira, Euro or US dollar opened in participation banks,
- No-interest Turkish lira, Euro or US dollar assets, and capital market instruments that do contain precious metals such as gold and silver,
- Stocks that are suitable for the participation index and participation banking principles,
- Gold and precious metals,
- No-interest securities mutual funds (e.g., venture capital investment funds, real estate mutual investment, etc.),
- No-interest bonds and bills such as sukuks (lease certificates) that are issued in Turkey or abroad.