KLU, the Para Piyasası Katılım (TL) Fonu run by Kuveyt Türk Portföy, is structured to be halal and is approved by the fund manager's advisory board. On 3 October 2026 it held 86,920,098,634 TL, priced at 5.066240 TL a unit, with 59.82 percent of assets in committed purchase and resale transactions on lease certificates and 40.18 percent in TL participation accounts. The annual management fee is 1.3 percent and individual investors pay 17.5 percent withholding on gains. The question most readers actually have is whether the committed transactions that make up most of the fund are a disguised repo. This guide explains the mechanics and the honest state of that debate.
Ready to compare halal options?
What KLU is and who it is for
A money market fund is a place to park cash you will need soon. Conventional versions hold treasury bills, deposits and repo; KLU replaces each of those with a participation equivalent. Kuveyt Türk Portföy describes it as Turkey's first interest-free money market participation fund and positions it for investors with low risk appetite who do not want to lose principal and want a daily return without waiting for a participation account's maturity. It is sold through Kuveyt Türk and, according to the fund page, appears in the fund menus of all banks and the TEFAS platform, which our how to use TEFAS guide covers.
The fund's job in a halal portfolio is narrow. It is where your emergency fund, your house deposit for next year and the cash between share purchases can sit while still earning something. It is not a growth investment and it is not a substitute for the one-year participation accounts compared on our bank accounts hub. The alternatives it competes with are daily-profit participation accounts and the short-term sukuk funds covered in our short-term sukuk funds comparison.
What the fund held on 3 October 2026
Kuveyt Türk Portföy publishes a distribution report on the fund page. On the day we checked, it showed two lines: committed purchase and sale transactions (taahhütlü alım-satım işlemleri) at 59.82 percent and TL participation accounts (katılma hesabı) at 40.18 percent. The investment limits allow a wider range, and understanding them tells you what the fund can become, not just what it is today.
| Asset or transaction type | Minimum | Maximum | Weight on 6 Oct 2026 |
|---|---|---|---|
| Public and private sector lease certificates (TL) | 0% | 100% | Held via committed transactions |
| Purchases with a resale undertaking on the BIST Committed Transactions Market | 0% | 100% | 59.82% |
| TL participation accounts | 0% | 50% | 40.18% |
| Promise (vaad) contracts | 0% | 10% | Not separately shown |
The benchmark is 90 percent the BIST-KYD 1-Month Profit Share TL index, 5 percent the BIST-KYD Public Sector Lease Certificates index and 5 percent the BIST-KYD Private Sector Lease Certificates index. In plain terms, the fund measures itself against a one-month participation account, which is exactly how you should judge it: is the net return after the 1.3 percent fee and 17.5 percent withholding better than what Kuveyt Türk or a rival pays on a daily or one-month participation account?
How a committed transaction works
The committed transaction is the part that needs explaining. On the BIST Committed Transactions Market, the fund buys a lease certificate (kira sertifikası) from a counterparty, typically a participation bank, and the counterparty undertakes to buy it back on a set date at a set price. Economically the fund has lent cash for a few days and earned the difference between the two prices. Legally and in fiqh terms, the fund owns a real asset-backed certificate for the period, bears ownership risk on it, and the repurchase is a promise (vaad) rather than a second sale signed at the same time as the first.
That last distinction is what the advisory board relies on. Classical fiqh rejects bay al-inah, where two sales are bundled so that an asset goes out and comes back with a price difference that is really interest. A unilateral binding promise to repurchase, with the asset genuinely changing hands and the certificate itself being a Shariah-approved lease instrument, is accepted by the TKBB advisory framework and by Kuveyt Türk Portföy's own board, whose approval the fund page cites. Our kira sertifikası explainer describes what the underlying certificate represents.
The Shariah debate, stated fairly
The case for the fund is that every component is individually approved: the certificates are lease-based, the participation accounts are profit-sharing, and the promise structure is one that Turkish advisory boards have accepted for years. The fund does not hold bonds, bills, deposits or conventional repo, and the manager is a participation group with its own board. On that basis most Turkish scholars treat KLU as permissible, and it is listed among participation funds on TEFAS.
The case against is one of substance over form. Critics, including some scholars who follow the stricter positions associated with AAOIFI on bilateral promises, argue that when the buy and the promise to repurchase are agreed together at a fixed price, the outcome is indistinguishable from repo and the asset is a conduit. They also note that the return tracks a one-month profit-share benchmark so closely that the fund behaves like a deposit. Our view is that the structure is defensible, that the manager has been transparent about it, and that an investor who is uncomfortable with promise-based liquidity instruments should prefer a daily participation account or a fund that holds lease certificates outright. There is no need to pretend the question is settled.
Fees, tax and what you actually keep
The annual management fee is 1.3 percent, taken daily from the fund's assets before the price is published. That is high for a money market product by international standards and sits in the middle of the Turkish participation fund range, which our katılım fund fees guide benchmarks. Individual investors pay withholding of 17.5 percent on gains under Temporary Article 67 of the Income Tax Law; the fund page lists that rate and refers readers to the official table for corporate rates. There is no entry or exit fee listed, and no minimum holding period.
The practical test is the net figure. If a one-month participation account at a competing bank pays a gross profit share and is subject to its own withholding rate, you should compare the net return per 100 TL over the same month. KLU wins when you need daily liquidity and same-day settlement, and loses when you can commit the money for a fixed term and the account's withholding treatment is kinder. Our daily participation accounts comparison gives you the other side of that calculation.
Settlement windows and the Kuveyt Türk limits
KLU settles at T+0 for orders placed before 12:30 and at T+1 after that. The fund page sets out the windows precisely, and they are the same for purchases and redemptions.
| Order time (day T) | Price applied | When it executes |
|---|---|---|
| 09:00 to 12:30 | Day T price | Day T, between 14:00 and 16:00 |
| 12:30 to 17:00 | Day T+1 price | Day T+1, between 14:00 and 16:00 |
Kuveyt Türk customers get wider access. Through the bank, KLU can be bought and sold within limits around the clock: on business days between 12:30 and 17:00 the limit is 15 million TL for purchases and 15 million TL for sales, purchases after 17:00 are unlimited and execute the next day, and sales up to 100,000 TL are possible at weekends. If you hold the fund at another bank or through a broker, the ordinary windows apply. Our KT Portföy review covers the manager's wider fund range.
How KLU compares with its alternatives
- Daily participation account: no management fee and no promise structure, but the profit share is set by the bank and is usually below a one-month account; best for the strictest investors.
- One-month participation account: a term commitment with its own withholding rate; usually the fairest benchmark for KLU's net return.
- Short-term lease certificate fund: holds certificates outright rather than through committed transactions, so fewer Shariah questions, but price moves more and settlement is slower.
- Conventional money market fund: holds bills, deposits and repo, all interest-based, and is not an option for a Muslim investor.
The missing alternative is a bond. Readers sometimes ask whether a short treasury bill is acceptable for cash parking because the yield is modest. It is not, and our are bonds haram guide explains why the size of the interest does not change its nature.
Our verdict on KLU
KLU is a permissible place to hold short-term cash for the large majority of Turkish Muslims who accept their participation bank's advisory board, and it is operationally excellent: same-day settlement before 12:30, round-the-clock access through Kuveyt Türk, a benchmark that mirrors a one-month account and a manager with a visible board. Its weaknesses are a 1.3 percent fee that eats into a money market return and a structure, committed transactions on lease certificates, that stricter scholars view as repo in substance. If you follow the stricter view, use a daily participation account instead. If you follow the Turkish advisory consensus, KLU is a sensible default for your cash float, and you should check the net return against a one-month account each quarter. Facts checked against kuveytturkportfoy.com.tr on 3 October 2026.
Frequently asked questions
Is KLU the same as a participation account?
No. A participation account is a deposit at a bank, covered by the TMSF scheme and earning a profit share set by that bank. KLU is a mutual fund that holds lease certificates through committed transactions and participation accounts at several banks, is not insured, charges a 1.3 percent management fee and is priced daily. It settles faster than a term account and does not lock your money, which is the trade-off.
What is a committed transaction in KLU?
It is a purchase of a lease certificate on the BIST Committed Transactions Market in which the seller promises to buy it back on a set date at a set price. The fund owns the certificate in between and earns the price difference. Turkish advisory boards accept the structure because the asset really changes hands and the repurchase is a promise, not a simultaneous second sale; stricter scholars question it.
How much tax do I pay on KLU gains?
The fund page lists an individual withholding rate of 17.5 percent on gains under Temporary Article 67 of the Income Tax Law, deducted by the bank or broker when you sell. Corporate rates are published separately on the official table the page links to. Withholding is final for individuals, so there is no further declaration, and there is no entry or exit fee to add to it.
How quickly can I get my money out?
Redemption orders placed between 09:00 and 12:30 are paid the same day between 14:00 and 16:00. Orders after 12:30 are paid the next business day in the same window. Kuveyt Türk customers can also sell up to 100,000 TL at weekends and up to 15 million TL on business-day afternoons, with the cash credited to their bank account.
Can I buy KLU from another bank?
Yes. The fund page states that KLU appears in the investment menus of all banks through TEFAS, so you can buy it from a participation bank or a conventional one. The price and fee are the same wherever you buy. The round-the-clock and weekend windows, however, apply only to orders placed through Kuveyt Türk's own channels.
Compare providers in your region
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Is the 1.3 percent fee reasonable for a money market fund?
It is on the high side for a cash product, because every tenth of a percent comes directly off a return that is itself modest. It is in the normal range for Turkish participation funds, which carry higher fees than conventional index products. Compare the fund's net return with a daily participation account that charges nothing; if the account wins consistently, the fee is costing you more than the liquidity is worth.
