Offshore Funds Need Not Be Risky

   Investing in offshore funds can be as safe as investing onshore if you know what due diligence is needed and you know how to do it.

   With good due diligence, investing offshore is no riskier than investing onshore. The scary stories that perpetuate the myth that offshore investment is extremely risky are generally associated with novice investors, with no knowledge of the offshore landscape, who invest in unregulated offshore funds or other offshore schemes.

   The single most important feature to ensure legitimacy of a fund is its regulation status. A fund that is regulated has to meet stringent compliance criteria as set out by the government and is audited by a government department or more likely a large third party accounting firm like Price Waterhouse Coopers, KPMG and Ernst & Young.

   Misappropriation of funds is virtually unheard of.

   Bear in mind that being regulated does not mean the fund will necessarily perform well, simply that the safeguards are there to prevent the loss of your money through fraud.

   A regulated investment fund has undergone an extraordinary amount of due diligence to meet the requirements of the regulatory body. In Australia the cost of this compliance for the licence to operate the fund can reach $100,000.

   Unregulated funds are fraught with risk and danger, even though some of them may be legitimate and even high yielding.

You are here:
Due Diligence on Offshore Funds - What sort of due diligence is required before investing in offshore mutual funds.

Due Diligence - What is due diligence.

Due Diligence Basics - The most basic minimum due diligence to carry out on any investment.

Due Diligence on Managers - What sort of due diligence is required on the manager of a fund.

Due Diligence Mistakes - The four most common mistakes people make in investing offshore.