We believe that one of the best ways to invest offshore is via mutual funds which are attractive investment vehicles for a number of reasons.
Fund managers may trade the underlying investments actively without concern for income tax consequences for the investor.
Mutual funds are strictly regulated and reduce risk by spreading their investments across many counters.
International mutual fund houses have enormous resources available and are able to apply these in undertaking comprehensive research to guide their strategies and investment selections .
They have large amounts of capital, enabling individual investors to gain access to investments not normally available to private investors.
The majority of fund management companies tend to use “top down”, “bottom up” or a combination of these two investment styles. Mutual funds also offer a variety of fund structures, such as individual funds, fund of funds and multi-manager funds.
No single approach has been “on the nose” at all times. We strongly recommend a blend of investment styles within an investment portfolio, including a spread between investment houses. We also believe that it is important to select fund management companies which seek consistent returns within a given risk ranking.
There are no stipulated investment terms or withdrawal penalties from mutual funds, so money may be withdrawn at any time. We do, however, recommend a minimum investment period of 5 to 7 years to allow for adverse market fluctuations. We draw your attention to the fact that capital invested in these funds is not guaranteed.