Offshore Funds offer a remarkable opportunity to accredited investors to invest in funds that are domiciled internationally. They provide investment exposure to international markets, thereby offering geographical / strategy/asset class diversification.
FirstCapital brings you handpicked Alternate Offshore Funds. Indian investors can invest through the LRS route, up to a maximum permissible limit as prescribed by the RBI from time to time.
Advantages of Investing in Offshore Funds
- Diversification: Investing in countries outside of one’s home country can reduce overall market risk by spreading the risk across various investment types, asset types, and countries.
- Unique products: Offshore funds provide an opportunity to invest in unique strategies that may not be available in India, due to various structural/regulatory factors.
- Tax benefits: Foreign countries in certain cases may offer tax benefits as incentives to attract investors outside of their respective countries.
- Protection of assets: Moving assets offshore can prevent financial harm arising from various legal actions, such as foreclosure or seizure of assets from creditors.
- Confidentiality: Investors wishing to maintain privacy and confidentiality may benefit from investing in offshore mutual funds.
- Capital building: Families can gradually build capital abroad to fund a house or child’s education, etc.