January 2022 Mutual Funds Market Analysis

Before analyzing the developments in the mutual funds market in the first month of 2022, let us briefly summarize the developments in the markets in general. Domestic markets started 2022 with inflation continuing to rise at a 19-year high due to the effect of hikes despite the falling tension in exchange rates. The economic administration, which continues its optimistic messages about inflation based on 50 percent, has added the concept of 'liraization' to its new strategies in support of the low interest rate policy. While reiterating the low interest rate policy at every opportunity, the liraization strategy aims to prevent dollarization and reduce the dominance of the dollar. Looking at foreign markets, the interest rate hike policies of strong central banks such as the Fed, ECB and BoE continue to be closely monitored. While moves and statements in this direction are closely monitored, rising inflation continues to plague economies. In January, the Fed's and ECB's asset purchases and statements targeting March for interest rate hikes came to the forefront. These developments, which have a decisive role in the portfolios of mutual funds, are also of great importance for the course of the US dollar, gold and oil prices.

Oil prices run to 100 dollars

One of the most talked about issues in the world markets in January was energy prices, which continued to rise led by oil prices. Brent oil prices climbed as high as $92 per barrel, while $100 per barrel was mentioned more frequently. While the pressure on inflation caused by the increase in oil prices is expected to increase further, it is highly curious how the high course of inflation will affect interest rate hike decisions.

Gold markets keep an eye on interest rate hikes

Gold markets, on the other hand, fell sharply from $1,860 to $1,780 in the last week of January after the Fed's clear statements regarding March. Although reaction purchases from here pushed spot gold back above $1,800, interest rate decisions and messages regarding this continue to be decisive for gold.

How did mutual funds spend January?

The highest return in mutual funds by category came from domestic equity funds with 8.29 percent. In the first month of 2022, it was noteworthy that equity funds provided returns above the 7 percent increase in the BIST 100 Index in Borsa Istanbul. Share-based participation funds, another fund category that predominantly includes equities in its portfolio, ranked second on a category basis. These funds provided investors with an average return of 6.58 percent in January. Other participation funds ranked third in the category-based return ranking with 2.10 percent. When we analyze the most profitable mutual funds in January, Ak Asset Management Oil Foreign ETF Fund Basket Fund, which benefited from the sharp rises in oil, ranked first with 15.5 percent. Domestic equity funds ranked second and third. These are Hedef Portföy First Equity Fund (Equity Intensive Fund) with a return of 14.8 percent and Atlas Portföy First Equity Fund (Equity Intensive Fund) with a return of 13.8 percent.

Total portfolio value of mutual funds breaks record

The total portfolio value reached an all-time high of 309 billion 683 million liras, while the mutual funds market in Turkey again exceeded 300 billion liras. Completing 2021 with 298 billion liras, the monthly increase in the total market value of mutual funds was 3.9 percent.

20 new funds met their investors in January

In the first month of the year, 20 new funds started trading in the Turkish mutual funds market. While the majority of these funds are hedge funds, technology-oriented mutual funds stand out among the new funds that met with investors. In this period when the star of thematic funds shines brighter with each passing month, they offer great opportunities for investors who want to utilize their savings in developing technologies. Yapı Kredi Portföy Fintech and Blockchain Technologies Fund Basket Fund started trading in the market as a fund that aims to reflect the potential of fintech and blockchain technologies, a global trend, to investors. Deniz Portföy Technology Companies Equity Fund (Equity Intensive Fund) and Inveo Portföy Technology Variable Fund were the other two funds that met with investors with a focus on technology. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!