Offshore investing refers to investing outside one’s local country and it is aimed at the investor taking advantage of products and/or investment processes outside of an investors home country. One of the largest advantages of offshore investments is to increase portfolio diversification to increase return and/or reduce the risk.

​There are various advantages of investing offshore and they include:

​ Tax Advantages: Tax is one of the largest expenses that one has to deal with and there are some countries that are considered Tax havens;

​ Get Citizenship: Some countries in a bid to increase investments offers citizenship to individuals who invest past a certain amount. One can take advantage of this for as long the citizenship comes with some advantages;

​ Increased Diversification: There are products that are not available in some jurisdiction and that is why people look for investments elsewhere e.g. you there are no firms that offers bitcoin in Kenya but they are distribution firms.

​Despite the many advantages and like many matters’ investments, one needs to be careful when investing offshore as many have been taken advantage of. Below are some of the key things that one need to look at as they invest offshore:

​ The Investment Knowledge: One should not invest in that which they do not understand as it is the surest way to lose money. The investors level of sophistication helps them in deciding what is the right product to invest in;

​ The Operating Environment: Understand the macro-economic environment and what assets would do well under the said environment. If there are times of uncertainty then investing in precious metals is the way to go;

​ Available Options: There are various investment options which can be either direct investments or indirect. Knowing what works for the investor is key;

​ The Risk-Return Proposition: From the available options, knowing what are the kind of returns to expect and what are the risks facing the investments is important. The above helps in knowing when one can maximize returns and when to cut down on their losses ;

​ Minimum Investments: Taking some forms of investments requires so huge capital outlay and so one should ensure that they do not over expose their investments to one particular asset.;

​ The Investment Partners: Offshore investments shall involve the section of the provider and/or broker. It is therefore important that one does due diligence on the people they can work with.

​Below are some of the products that one can consider while investing offshore:

​i. Equities/Stocks

​ii. Indicies – Stock Market, Bonds, Commodities etc

​iii. Bonds

​iv. Currencies

​v. Commodities

​vi. Mutual/pool funds

​vii. Digital currencies

​viii. Company’s

​ix. Private funds eg PE and Venture capital.

​Irrespective of where one is in their investment journey, the aim is to ensure that they are keeping themselves updated on what is happening and asking how they can take advantage of this. If you need more information on offshore investments get in touch with us and we shall direct you to the right people to speak to.

​Reach us through Call/WhatsApp: +254759092412

​Email: info@elizabethnkukuu.com/hillary@elizabethnkukuu.com

​Enroll for our private Wealth Creation Master class by Clicking here: https://lnkd.in/gka-Xwcr

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