22/01/14

With the necessity of individual retirement, the number of participants has increased considerably. However, most citizens who join the private pension insurance do not know the functioning of the system.

Since the system is essentially a savings insurance, the only point to be considered is the management of the funds. Payments are made through calculations over pension funds.

For this reason, it is important for the insurance process to know how it works with funds and which fund to invest in.

What are BES Funds?

You can invest in your preferred funds without any limits. You can also select multiple funds. The determined premium amount is divided between different funds. The amount deposited in the funds can be changed up to 6 times during the year. The Fund should pay attention to the short time restriction when making the amount change.

Although it differs between insurance companies, the funds offered within the scope of BES;

●    Participation fund: Lease certificates, participation accounts, common shares, gold are the types of funds formed by market instruments.

●    Equity fund: At least 80% of them constitute the shares of domestic and foreign exporters.

●    Mixed funds: The debt instruments, which are at least 20%, are a mixed fund consisting of two precious commodities such as gold.

●    Contribution fund: It is the fund where the evaluation of the contribution paid on behalf of the participant is made.

They are the most used.

Which fund should be selected within the BES Scope?

As it can be understood from the explanations of the funds, it can be a challenging process for those who do not have a command of the subject in the process in fund management. If you do not have much information about the fund management process, you may need to seek help from the insurance company you have agreed with. In this process, you can choose the appropriate fund by paying attention to the following recommendations.

●    If you are staying for the long term, it would be good to turn to more than one fund instead of a single fund if there is time for retirement age and premium period to expire.

●    You should avoid investing through a single fund.

●    You should remember that whichever fund you choose has certain risks.

In order to evaluate the savings in this direction, you can choose the funds suitable for you according to the risk reports. You should not stay out of the process by checking regularly after fund selections