A PROPOSAL FOR CONSTRUCTING AN ISLAMIC MONEY MARKET FUND FOR THE TURKISH MARKET

Özet

Islamic finance is widely considered to be underutilized in Turkey. One of the reasons is the lack ofproper investment vehicles to cater the need of investors with interest sensitivity. Participation banks onlyoffer time deposit accounts with more than 30 days maturity. Investors with shorter term liquidity arefacing with leaving their money in demand deposit accounts and losing alternative return or moving to theconventional investment vehicles. In this article, we propose to construct an Islamic money market fundin order to protect capital and provide some return for the corporate and individual investors with interestsensitivity. In this context we expect that Islamic money market fund would also help the growth of Islamicfinance in Turkey.