Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Put At Least 20% Down On A Home

Put At Least 20% Down On A Home - Your home is most likely the biggest purchase you will make in your lifetime, so when planning for the big day,...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Offshore Mutual Funds

Investing in offshore mutual funds can provide an investor with a number of substantial and lucrative benefits. Overseas can be an attractive investment opportunity, but the most attractive advantage in offshore mutual funds are the tax benefits. Foreign investors in offshore mutual funds are usually able to significantly reduce their tax obligations, if not altogether eliminate the amount of taxes they pay.

Usually offshore mutual funds are established in popular countries like the Bahamas, Bermuda, as well as the Cayman Islands. Typically offshore mutual funds are popular in these countries due to their unregulated nature of investments. Privacy issues make offshore mutual funds attractive as many countries have laws that protect revealing the identity of the offshore mutual funds investor.

There are dangers associated with offshore mutual funds. It is difficult to manage your funds, as the distance between the investor of offshore mutual funds and the country he is associated with allows for little first hand communication with the fund manager. Despite restrictions that are beneficial regarding offshore mutual funds, each country has its own set of regulations, making it difficult to be familiar with differing rules from one country to the next. Plus, while taxes are lower, the offshore mutual funds investor must constantly educate himself on issues that can impact his finances. Certain countries now require taxes to be paid on all generated income, regardless of where the work actually took place.

Offshore funds work on the same principle as mutual funds, pooling investors' money to provide the benefits of a diversified portfolio of investments. A fund qualifies as an offshore investment if it is incorporated offshore and used by a non-resident. These offshore mutual funds usually pay little or nothing in the way of local taxes, but they may receive dividends depending on where they invest the assets. The same is true of offshore banking since offshore banks do not always deduct tax from the interest as their counterparts would have to do.

If tax benefits are not the investor’s main focus in using offshore funds or trusts, then there may be other options for offshore mutual funds. The type of investment chosen may simply not be an offshore account, due to regulations or simply a lack of market demand.

Investing in offshore mutual funds should be done with caution. Investors should be encouraged to select funds they are familiar with. Caution should be observed, especially with illegitimate investment companies targeting and preying on naive investors. Having a get rich quick attitude can lead your offshore mutual funds experience to be a negative one.

Discuss It!

vivavideo pro apk said:

I like this site and article as well

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Drop Shipping

Drop Shipping? - Drop shipping is where the supplier of merchandise sends any purchases directly to retail clients. They will maintain the storage and all other warehouse functions so the retailer doesn’t have to keep the items in his or her store. Plus with this type of program the retailer...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com