1. Why invest through a discount broker?
2. Why invest offshore?
3. Why invest through a life policy?
4. Why should a UK resident or returning UK expatriate invest through a life assurance bond rather than directly into offshore funds?
5. Why invest into mutual funds?
6. What are Fund of Funds and are there any major benefits?
7. What are hedge funds?
8. Why do you primarily recommend hedge funds?
9. I am looking for a no risk investment with high guaranteed returns & have seen some unfamiliar banks and funds offering just that. Why do you not exhibit these here?

If an investor directly approaches the investment company, they will either be offered the standard charges (no discount) since the company has to protect its broker network or will simply refuse an individual application. 

We rebate a substantial part of our commission either by cashback paid into your nominated bank account, increased allocation or reduced bid/offer thus reducing charges and boosting your investment from day 1.

Our large commission discounts are always extra to any increased allocation or special offer from the investment provider.

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Of course, whilst we use Sterling as an example, we could have chosen any currency and compared any onshore and offshore funds with the same assets. The net affect would be the same, although the onshore fund may be taxed differently from country to country and thus cause a larger or smaller difference.

*(with the exception of some countries where withholding tax on dividends is payable on underlying investments).

Consequently, the proceeds of a life assurance bond are treated more favorably than directly held investment assets.

Any life assurance bonds you see here have nominal life cover, normally around 101% of fund value, and is merely included at minimal cost simply to provide the tax benefits.

UK Tax Advantages of Investing into offshore funds through an Offshore Bond and then see Offshore Bond.

The fund manager or fund management team control the funds' capital and ensure it remains invested at all times in the assets that offer the best opportunity for investment gain or income generation whilst balancing the fund's exposure to any risk that could cause the fund to loose value.

A fund with a narrow or specific scope may just limit it's exposure to one country or market sector, such as India or UK blue chip stocks, whereas a more broad ranging fund may look for potential growth opportunities across differing sectors without geographic boundaries.

When managed correctly, Fund of Funds offer increased investment potential with lower risk by selecting the best fund managers and the best funds without restriction to country or sector boundaries.

Fund of hedge funds in particular offer a lower risk choice for private investors who do not wish to run the risk of single manager hedge funds.

Fund of funds also offer investors the opportunity to access some underlying funds that would normally incur high minimum investments. (i.e. Since the fund is the investor it can easily meet a 1 million USD minimum holding by pooling investors capital and thus opens up certain institutional or private funds).

Using various different contracts, hedge funds leverage the buying power of a clients' investment and allow them to capitalise on small movements in the price of an asset without ever owning the asset or committing the same level of capital.

Many have easily preserved their wealth due to the protection or hedging effect of hedge funds whilst others suffer the equity market losses. More and more people now recognise that with a greater hedge bias in a portfolio that these are not just a risk balancing tool but a strong growth option uncorrelated to other investments. 

Astute investors now seek absolute returns on a year on year basis in preference to the boom and bust of equities.

Some single manager hedge funds can be very high risk and so this is where the Fund of Hedge Fund (see Fund of Funds) really come into their own, by lowering risk to any single manager failure and by providing access to high minimum investment funds. 

Remember all investments are simply a balance of risk versus return and just because it is called a bank does not mean your money is necessarily safe. 

Some Caribbean banks can be started with minimum due diligence on the directors and as little as 90,000 STG in paid-up capital. Investors will only place money with these banks/funds if there is a gain to be made over a high street bank, so they are forced to offer higher returns. 

In reality, due to little or no investor protection, you are effectively loaning your money to the 'bank' who then must work your capital sufficiently hard to cover both your higher interest rate and their profit. Hence they take your money and either place in the market (equities/futures/bonds, etc) or loan to business/private entities again at a higher rate. As these will most likely be high risk loans due to the higher rate they would need to charge then there is a strong chance of default. 

The net effect is that they place your money at risk and if it goes wrong then you loose your capital. Of course all banks work in a similar way, however the more exotic banks/funds have little or no experience, few regulations to protect investors or control client funds and very little to lose if it all goes wrong.

If you are aware of these risks, then there are investment potentials with some Eastern block banks looking for hard currency, however we would tend to steer clear of some of the newer higher 'guaranteed' funds as they are mostly destined for failure..