Investment fund crisis in Turkey puts 131 funds into liquidation process

According to an analysis by the British economic magazine The Economist, 131 investment funds were placed into liquidation during the investment fund crisis in Turkey, affecting approximately 18 billion dollars in assets and 450,000 investors, while the crisis put the country's MSCI emerging markets status at risk.

In an analysis addressing the investment fund crisis in Turkey, the British economic magazine The Economist drew attention to extraordinary price increases observed in certain funds and company shares, followed by subsequent liquidity problems. According to the report, one of Tera's main investment funds generated a return of over 60,000 percent in three years, while Destek Finans Faktoring shares rose by approximately 7,000 percent in the 17 months following the initial public offering. Following these increases, the crisis became apparent when the requests of investors wishing to exit the funds could not be met, and 131 investment funds were placed into liquidation.