Monday, January 07, 2008

How About 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.

All these different kind of offshore funds and their onshore competitors carry several benefits.Not only the fact that the offshore funds have tax benefits but that they are scructured in the same way as their onshore competitors.They also clearly state that they are registered offshore.

There are several different kind of offshore investment funds such as income,bond,equity and futures funds out there.To name some of the benefits these funds have to offer like growth potential,affordabilty,diversification,variety,regulation and professional management.

For someone who is interested in currency investing going offshore is the right way since most of these funds carry currencies in their portfolio.Offshore investing offers you the possibilty to diversify your portfolio to reduce your risk and avoid potential losses that might occur.Most of these funds offer the non trading investor the opprortunity to join and open a managed futures account or invest in a pooled account.

Holding your money offshore or investing offshore is not necessary as an expatriate,but this can be seen as the best way to keep taxes to a minimum.If taxes are not your primary concern when investing offshore then onshore hedge funds can also be considered.

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

The most important factor to be considered as an offshore fund is that it has to be incorporated in an offshore entity and can only accept investors from outside this country of incorporation.There local taxes are kept to a minimum and they are allowed to gain profits on dividends and interest when investing in their offshore location

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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