For an offshore investment to qualify as an offshore investing mutual fund it must be incorporated in an offshore centre and intended for use by non-residents of that location.    Such funds generally pay little or nothing in the way of local taxes. For the investor who is new to the offshore investment scene, the easiest way to start is to invest in offshore mutual funds.  This is because mutual funds don't rise and fall as quickly as shares can and don't require such close monitoring. Add to that the fact that offshore investing mutual funds are taxed less and you have a winner without having to be an investment wiz.

Why invest offshore?

   No other investment vehicle possesses the attributes of quality, liquidity, security and diversification that a mutual fund does.  And offshore investing mutual funds simply do it better!      Just check out the performances of the Best Mutual Funds Offshore and you'll realize how poorly the funds we've been used to at home are performing.

   Though often it's not so much that the fund is performing poorly, but that all the profits are being taken by the Taxman.

   As a low cost investment vehicle for like-minded investors, mutual funds provide a means to pool monies together for the common purpose of investing in investments which those individuals could not do themselves.  Certainly not to the extent that a large mutual fund can do anyway.

Ten Reasons Why Offshore Investing Mutual Funds Beats Onshore Investing

•    You have the whole world to invest in instead of limiting yourself to one country
•    An expert is managing your money
•    You are treated the same regardless of investment amount
•    You can redeem your money without hassles
•    There are investments that suit everybody
•    You can minimize your tax
•    Your investments are safe from litigators
•    Anyone can do it
•    It has much higher profit potential
•    Once you have selected and made the investment it's all on autopilot

Taxation and offshore investing mutual funds

   When you invest through your offshore structure in a mutual fund all the normal tax considerations apply to any money which you repatriate back into your country of residence.  Note that tax considerations of your place of living don't apply to your profits until you repatriate those profits back into your country of residence and that is one of the big reasons why offshore investing mutual funds are the best way to invest in mutual funds.   This is also the reason why our governments prefer us to not know about this hidden wealth and how we can easily attain our financial freedom.

   Mutual fund companies which are domiciled offshore come under the tax rules of the jurisdiction in which they are domiciled. Often these funds enjoy a tax-free status or very low (e.g. 3%) tax status or even zero tax as long as investors do not reside in the location of the fund they invest in.p>

   The investment you make into a mutual fund has any profits reinvested in the fund without you having to declare its distributions every year.  This allows for a much greater compounding effect.

   Only when you repatriate any profits back onshore are you liable for tax.

   As an example, suppose you invested $100,000 in a fund through your trust and you received a debenture returning 10% pa for a period of 4 years.  At the end of the 4 years you would have to pay tax on that 10% for each of the 4 years i.e. tax on $40,000. 

   Meanwhile, if the fund actually returned an average of 30% a year for those 4 years your trust would have earned say $30,000 each year, that's $120,000 plus the compounding effect over that time of the reinvested profits.  You paid tax on only $40,000, the rest of the money is still in the trust for further investment and compounding.  This tax deferral can make a massive difference to your gains because of compounding.

   If you know where to locate the very best offshore funds then you can compound these huge tax savings very rapidly.

You are here:
Offshore Investing Mutual Funds - an outline of why offshore funds beat all, and a bit about taxation.

Mutual Funds - An explanation of what they are.

Mutual Fund Investing - How funds make money, how you make money from them, explanation of distributions and some special dates.

Advantages - a discussion of the advantages and the disadvantages of these funds.

Types of Mutual Fund - a listing and explanation of all the different types of funds onshore and offshore.

Offshore Investments - how to go about making your offshore investment through an offshore trust.

Understanding the Mutual Fund Prospectus - an explanation of some of the main things to look for when reading a prospectus.

Choosing a Mutual Fund - 6 important things to consider before making your decision to invest in a particular fund.

Compare Mutual Funds - how to analyze what the 1 year, 3 year, 5 year and 10 year returns mean, and how to compare funds with those figures.

Mutual Fund Managers - A very comprehensive list in alphabetical order of many of the managers of mutual fund families around the world.