Asset Allocation

Asset Allocation means the allocation of an investment portfolio among various financial instruments with a different risk/yield ratio. A sound asset allocation results in lower risks and therefore a lower yield variation. This approach provides an effective yield with a long-term perspective, rather than a short-term one.

Financial instruments come with different risk/yield levels. Similarly, our investors also have varying risk taking and yield expectation levels. What is critical here is to create portfolios by making sure that our investors and their preferred financial instruments have similar risk/yield levels.

As such, investment products have been divided into sub-groups of Cash Products, Fixed-Income Products, and Variable-Income Products under the main groups of Turkish lira and Foreign Exchange.

Cash Products consist of lowest-risk items such as deposits, repurchase agreements (repo transactions), and liquid funds.
Fixed-Income Products consist of low-risk items such as bonds and bills and bond bill funds.
Variable-Income Products consist of high-risk items such as stocks and stock-intensive funds.

Similarly, our investors have been grouped into five risk levels based on their risk appetite: Lowest-Risk, Low-Risk, Medium-Risk, High-Risk, and Highest-Risk. The portfolio has been distributed based on the aforementioned product groups under current market conditions for each risk group. You can take the provided test to determine your risk group on the Yapı Kredi Internet Banking website or at Private Banking centers.

You can contact your portfolio manager to find out which distributions are offered to you and how to perform any changes on this distribution as well as to receive more information on the allocation.


Behavioral Finance Approach

Would you prefer a product that is 90 percent fat-free or a product that contains 10 percent fat?

Which city do you think is more crowded, Istanbul or Jakarta?

If one day your banking manager, with whom you have been talking about interest rates and making decisions on how to make use of your money, asks you questions like these, don’t be surprised. This is not to test your general knowledge or intelligence. This is only to perform a more accurate analysis of you by trying to understand your tendencies that even you may not be aware of.

The Classical Finance Theory, which had been widely accepted around the world, has transformed into the Behavioral Finance Theory, which has become an emerging approach following the 2008 crisis.

Behavioral finance is an approach that suggests that individuals are affected by psychological and sociological factors when making investment decisions under conditions of risk and ambiguity.


While behavioral finance management is performed by several big finance organizations around the world, in Turkey, Yapı Kredi Private Banking, supported by the academic contributions of Koç University, has initiated a first in the finance industry with the “Seyir Defteri” project. The fact that R&D projects are very important and that Yapı Kredi has received support from TUBITAK on this project shows how different and prestigious this project is within the industry.

Our efforts to provide better service to our customers, to analyze the needs of our customers accurately, and to protect the customer by product matches that are in line with their risk appetite have led us to create the ideal portfolio suggestion tool, which is called Seyir Defteri.

The Seyir Defteri system consists of behavioral finance analyses, data analyses, and estimation models. Behavioral finance management allows for the evaluation of customer’s answers in the Financial Behavior Form, the analysis of customers by Portfolio Managers via the Financial Behavior Form, and customer-product matching based on the analysis of the past transactions of the customer.

Based on the philosophy of having products aligned to the customer as opposed to other way around, Seyir Defteri suggests the most appropriate product options based on the financial trends, product-risk perception, and the expectations of the customer.

Our customers can see all possible outcomes using the simulation displays, allowing them to make comparisons between different investment opportunities and making it easy to make decisions based on market expectations.