What is ‘Offshore Mutual Fund’
A mutual fund that is based in an offshore jurisdiction, which is generally considered to be outside the United States. The term is often used, perhaps incorrectly, to describe a fund that is not in a high-tax country.
Explaining ‘Offshore Mutual Fund’
Always be careful when investing your money in offshore accounts that have sponsors that are not well known and/or are located outside of established financial centers such as London or Hong Kong. Non-mainstream offerings may be more prone to scams because of relaxed regulations in some offshore locations.
Offshore funds offer a number of features that distinguish them from those domiciled in the U.S., as a lower level of regulation makes it easier to establish and administer the funds. Consequently, operating costs are significantly reduced and management fees can be lower. Tax exempt status enables the fund to reinvest gains that would otherwise be taxable in high-tax areas.
Offshore Mutual Fund FAQ
Can you lose all your money in a mutual fund?
Which international mutual fund is best?
How are offshore funds taxed?
What are offshore mutual funds?
How do you choose which mutual fund is the best?
Can mutual funds make you rich?
How can I track all mutual funds?
- The economic geography of offshore incorporation in tax havens and offshore financial centres: The case of Chinese MNEs – academic.oup.com [PDF]
- Why worry? The impact of the OECD harmful tax competition initiative on Caribbean offshore financial centres – www.tandfonline.com [PDF]
- The role of offshore financial centres in globalization – papers.ssrn.com [PDF]
- Offshore investment funds: monsters in emerging markets? – www.sciencedirect.com [PDF]
- The anatomy of the Cayman Islands offshore financial center: Anglo-America, Japan, and the role of hedge funds – www.tandfonline.com [PDF]
- Global finance and the growth of offshore financial centers: The Manx experience – www.sciencedirect.com [PDF]
- The Botswana share market and its role in financial and economic development – www.sciencedirect.com [PDF]