Success stories are often described as something achieved by hard work, perseverance, and having the right connections. However, not everyone knows that the most successful people in the world have relied on one strategic move that has not only made them financially stronger, but has also helped them grow their wealth over time: investing in offshore mutual funds.
In definition, offshore mutual funds refer to a collective investment system strategically situated in offshore financial centers (OFC) where non-resident investors can enjoy an attractive list of benefits: little or no tax liabilities in the jurisdiction, geographic diversification, and asset protection and privacy. Let’s take a closer look at the major benefits of investing in offshore mutual funds.
Low to neutral tax liabilities
Investing in offshore mutual funds means enjoying its primary incentive: favorable and most of the time, zero tax rates. This is because of the government’s initiatives to promote healthy and more attractive investments. Since these small countries have relatively few resources of their own, they have focused on attracting wealth from the outside to effectively boost their economic activity.
Smaller stakes with bigger potential returns
Investing in offshore mutual funds have been attractive to investors around the world because knowledgeable fund managers are able to outperform onshore funds. LOM Financial’s mutual funds, for example, have consistently posted strong growth figures year after year. The company’s investment experts have experience in managing the nuances of mutual funds for the last two decades, proven by the funds’ impressive track records of out-performing their benchmarks on a consistent basis.
Effective Portfolio Diversification
Many financial and investment experts believe that diversifying one’s investment portfolio is an effective way to improve one’s risk-adjusted returns—and investing offshore can add more to the list of its benefits. Offshore mutual funds offer investors opportunities to create a diversified portfolio.
Secrecy Policies and Regulations
Offshore centers provide the liberty in regard to regulations as well as policies that allow security and privacy of investors’ assets. With these investor driven regulations, the process of establishing and more importantly, administering funds, are simplified.
These advantages mean less paperwork, reduced headaches, and worry.