Tag: LOM Financial

Offshore mutual funds: International investing made easier

Image source: moneycontrol.com

Image source: moneycontrol.com

Many seasoned investors can agree that mutual funds are the ideal investments options especially for those who are still new to the trade or are having difficulty finding time to study how the securities markets work and behave. In definition, mutual funds are a type of investment program that is directly funded by shareholders, trading in several diversified holdings. The offshore transactions involved in this type of investment are the easiest to deal with, especially that they are professionally managed and are often tax-efficient.

In particular, offshore mutual funds can be classified into these categories:

  1. Equity growth fund

This type of mutual fund is also known as a “stock fund.” Basically, it focuses on the investment in equities, which signify ownership of company shares. This is one of the most aggressive and risk-driven mutual funds available, but also among the most potentially profitable.

  1. Fixed-income fund

The focus of this fund is in the short-term fixed income securities. Some examples of this type of mutual fund are treasury bills, government bonds, commercial paper, and corporate bonds.

  1. Money market fund

This type of fund invests in short-term debt securities (commercial paper and US Treasury bills). It’s a relatively safe and open-ended mutual fund that provides decent yield.

  1. Balanced fund

Some investors prefer this type of fund for two reasons: low-risk and potential for capital appreciation. Aside from being a safe option, it allows investors to invest in a particular asset class based on the set minimum and maximum amounts. It is mainly a combination of bonds and stocks.

  1. Stable income fund

The purpose of this type of fund is to produce an income stream for its shareholders through putting money in securities that provide interest payments and dividends.

  1. Emerging market fund

The unique thing about an emerging market fund is its concentration on the investment of securities from several emerging economies in the developing world.  This provides high chances for significant growth.

For a deeper understanding of these offshore mutual funds, consult with an advisor from leading offshore investment firms, such as LOM Financial.

Consider these tiny tropical paradises when investing in offshore mutual funds

Many offshore financial centers have been dependable jurisdictions for international financial investors as well as commercial and corporate entities.  Within the industry, there are regions that have become the top go-to locations that offer generous benefits like financial privacy and tax liability. Some perfect examples are the islands in and near the Caribbean region: Cayman Islands, Bahamas, and Bermuda.

The Cayman Islands

Image source: worldpropertyjournal.com

Image source: worldpropertyjournal.com

Located in the western Caribbean Sea, this offshore financial center has been considered as one of the largest in the world. It primarily provides its Western clients services like offshore mutual funds and offshore banking. What makes the islands so attractive to investors and companies is the fact that it does not impose income tax, estate or inheritance tax, corporate tax, or capital gains tax, to name a few. Cayman’s highly strict banking laws protect banking privacy and they do not have any tax treaties with other countries.

The Bahamas

Image source: cntraveler.com

Image source: cntraveler.com

Located just a few hundred kilometers away from mainland USA, the island-country of the Bahamas is one of the most prosperous and richest countries in the Caribbean region.  Its government has been actively promoting programs to attract offshore businesses to its islands. Aside from the fact that the country is a popular tourist destination among European and American travelers, the nation’s well-designed tax laws as well as tax regulations particularly on asset protection, have been attractive characteristics for non-resident investors and commercial businesses.  In addition, the Bahamas boasts of an open economy, with their currency, the Bahamian dollar, pegged to the U.S. dollar.


Image source: bermudianlife.com

Image source: bermudianlife.com

This wealthy Atlantic paradise has two main attractions: first, it is home to one of the world’s biggest reinsurance centers and second, it has made its name as one of the most dependable offshore centers on insurance-related securities and offshore mutual funds. Although geographically nearer to the Caribbean, Bermuda is actually a part of the British North America, located in the Sargasso Sea. One of the world’s most trusted offshore financial services firms, LOM Financial, is headquartered right at the heart of this British Overseas Territory (BOT) in Hamilton, with offices in the two aforementioned jurisdictions.

To know more about offshore mutual funds, click HERE.