India’s Best Portal for Offshore Investment Funds

Offshore Funds are funds that make investments in international markets and hence, are also often referred to as ‘International Funds’. These schemes invest in stocks, mutual funds schemes, fixed income securities, real estate assets etc. overseas. Offshore funds are required to comply with the guidelines issued by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). The asset management company managing the offshore funds also needs to comply with the regulations of the foreign country where they are registered. Offshore funds are available to investors in the form of thematic, country-specific, and region-specific funds.

Benefits of investing in offshore funds

  • Offshore funds aid investors in diversification across geographies
  • Offshore funds may fetch higher returns when the home economy is not doing great.
  • Since offshore funds are usually incorporated in countries that offer tax rebates to foreign investors (tax havens), investors can expect attractive returns on their investment.
  • Investors get an opportunity to invest in international brands and businesses

Disadvantages of investing in Offshore Funds

  • Negative movement of the offshore currency can impact the returns.
  • Returns can also be impacted by the market fluctuations, tax laws, policies, and other developments in both the offshore country and home country.
  • A higher risk is associated with investing in offshore funds

Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.