Offshore Fund

Offshore fund

A mutual fund whose headquarters is based outside the United States.

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Offshore Mutual Fund

A mutual fund based outside the United States. Offshore mutual funds must comply with regulations in the countries in which they are registered, but need not comply with American regulations. Offshore mutual funds cannot be sold in the United States unless they comply with these regulations, but they may invest in U.S. securities.

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Offshore fund. An offshore fund is a mutual fund that's sponsored by a financial institution that's based outside the United States. Unless the fund meets all the regulatory requirements imposed on domestically sponsored funds, it can't be sold in the United States.

However, an offshore fund may be sponsored by an overseas branch of a US institution, may invest in US businesses, and may be denominated, or offered for sale, in US dollars. In total, there are approximately four times as many offshore funds as there are US-based funds.