What is an Offshore Private Mutual Fund?
There are two basic types of offshore mutual funds, one that is open for public investment (public) and one that is limited to an exclusive number of individuals (private).
A mutual fund is an investment vehicle that allows investors to collectively pursue an opportunity; while an offshore mutual funds gives one the added advantage of allowing investors access to international markets with the ability to receive tax free capital gains.
Offshore Funds gives a great deal of freedom in management structure and operations allowing investors the ability to shape the vehicle according to its purpose: as part of a offshore company, partnership, trust or any other similar financial structure.
Offshore Private Mutual Funds are specifically for individuals looking to internationalize their portfolio while receiving tax free earnings in a minimally regulated environment. They are limited to a small number of persons and usually have a required minimum financial investment. A St. Lucia Private Mutual Fund, for example, has a limit of 100 persons and a minimum of 50,000 USD, while most other Funds require a 100,000 USD balance and are limited to under 50 persons.
Offshore funds have minimum governmental involvement and financial regulation, allowing you the ability to maximize your leverage and potential in your international investment.