Abstract:

The purpose of this study is to discuss legal and regulatory enviroment, trends in fund industry in Turkey, a newly organized pension fund industry, new products to be introduced, and finaly policy issues that authorites should consider. For the last three years Turkish mutual fund industry grew at a annual compound rate of 78.63. The major change in the investment fund sector is the the launch of new private pension funds in October 2003. Exchange Traded Funds ETF’s are expected to be introduced in Turkey. The large number of small funds in Turkey is a rather troubling feature. Because it is acknowledged that there ara some significant economies of scale in running a mutual fund. Therefore, the Government and Capital Market Board should consider measures that would encourage the smaller funds to merge

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