Monday, January 07, 2008

The Benefits Of Offshore Investing

By John Spencer

The main advantage offered by offshore funds is that it can earn and accumulate profits while paying little or no tax. In case the investors reside in jurisdictions that tax such gains, which means most high tax countries, then the payment of dividends, capital gains and interest will only be taxed.

Offshore funds have a clear advantage over their high tax counterparts even if income potentials were similar. They mainly offer financial services in general but concentrate particularly on offshore investment. It is very well known that funds offer the investor an affordable and easy method to access a wide variety of professionally managed investments.

There are many different kinds of offshore and onshore funds which both their advanteges.One advantage of the offshore funds is the fact they are organized like onshore funds.They also make it open to the public that they are registered offshore on their website or documents.

Offshore investment funds come in many flavors from income, bond, capital, money, property, equity and rising market funds. They offer potential for growth and returns and are advantageous for their affordability, tax benefits, diversification, regulation, variety and professional management.

Most of these offshore funds carry a wide variety of comomodities in their portfolio.Investors who are into currency trading will definately like offshore investment funds.When investing in offshore funds you will have the possibilty to spread your investment in such a way that you reduce your risk and and create the potential of making higher profits.When you are not an active trader the offshore investment funds offer managed and pooled accounts to invest in.

If you are an expatriate then holding your money offshore or even investing offshore is not really necessary but if you wish to pay as little as possible in taxes this is the best option available.When you have other priorities then keeping your taxes to a minimum then onshore hedge funds might be an other way to go.

Expatriate insurance and offshore funds are based on the same priciple,they are both professionaly managed and keep well diversified portfolios.

To be considered as an offshore fund the first thing that is needed is being incorporated in an offshore country and only except investors which do not live in that particular country.Most of these funds pay almost no taxes in there country of incorporation but they can receive dividends or interest on funds which are invested in their jurisdiction..

The last couple of years a lot of money has been invested offshore using pooled money which creates the opportunity to invest in a wider range of investments which are only open to large amounts of capital.

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