Monday, January 07, 2008

How About Offshore Investing

By John Spencer

The most important advantage in offshore investing is that you can make a lot of money without paying almost any taxes.If the investor lives in a place where he pays taxes like most countries then he will only pay taxes on his dividend or interest made.

These offshore hedge funds have one very important things working for them which is the tax benefit,and this, the onshore hedge funds with the same returns don't have.Some of these funds ofer regular banking services but they tend to focus on the investments for the most part.Most people now by know that these funds are easily accesible over the internet and that the offer a lot of different funds to participate in.

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.

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.

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.

The qualification of a fund as an offshore investment is attained if it is incorporated in an offshore center and intended for use by non-residents of that jurisdiction. In the way of local taxes, such funds usually pay little or nothing, though they may receive dividends or interest net of withholding tax depending on where and which assets they invest there. The major tax benefits associated with offshore investment are that they can grow tax-free, profits or income can be realized without the deduction of tax at source. But you can see that there are also tax breaks offered to those who invest through mutual funds as well.

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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