Offshore funds are designed to allow investment in a fund without being exposed to the burdens of onshore tax or regulation. If one is looking forward to invest in offshore funds, one can look forward to its significant benefits like tax neutrality, speed, flexibility and pragmatic regulation in comparison to most onshore jurisdictions. An offshore fund could be a corporation, a unit trust or a limited partnership with the authority abroad and investments are usually in the form of units, shares, interests, or partnerships. It’s considered investor-friendly, well regulated and financially secure.
The advantages of this kind of investments are that investors like you can enjoy direct access and exposure to the international brands and businesses. Offshore mutual funds end up giving India sectoral diversification. Tax-efficiency is highly considered as a result offshore funds are established in countries that offer tax-efficiency. Just like a fixed income fund, offshore investments levy taxes on funds.