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Economy

How Turkey's investment fund bubble burst

Nearly half a million investors poured over $20 billion into Turkish investment funds seeking high returns amid soaring inflation and a weakening lira.

The Business Standard · 4 October 2026, 1:55 PM

Within a span of just three years, assets in Turkish investment funds surged to over $20 billion. Driven by the need to hedge against high inflation and the depreciation of the lira, approximately half a million investors—including celebrities, politicians, and former officials—sought out these funds for higher returns. This rapid accumulation eventually led to the bursting of the investment bubble.