Tax-efficient Investing – Invest with tax benefits
Tax-efficient investing is one of the most effective ways for investors to allocate the funds or reinvest savings to generate higher returns or broadly diversify investment portfolios. Tax-efficient investments consist of investment opportunities that offer investors additional tax benefits strived to reduce the costs and get the most out of investment.
Top Tax-efficient investment options
1. Tax-efficient Mutual Funds
There are closed-end and open-end mutual funds domiciled in tax-efficient offshore jurisdictions, such as Cayman Islands, British Virgin Islands and other non-carribean countries with efficient tax law. Investing in offshore investment products is a good choice for investors looking to allocate their savings to global markets, including emerging markets that also offer great investment opportunities with potentially higher returns and strong growth potential.
What’s the difference?
There is significant difference in sales, pricing and structure of open-end funds and closed-end mutual funds. A closed-end fund has a fixed number of shares offered by an investment company through an initial public offering, while open-end funds are offered through a mutual fund company that sells shares directly to investors.
Closed-end funds are more likely than open-end funds to include alternative investments in their portfolios such as futures, derivatives, or foreign currency, according to Investopedia. Such funds try to reduce risk through asset allocation to local and state government debt.
Tax-efficient investing with Einvestment
Einvestment is an offshore investment platform owned, powered and operated by Actively Managed Fund domiciled in the Cayman Islands, one of the world-famous jurisdiction for mutual funds and wealth management companies. The Fund offers two investment products for investors with different risk profile and financial goals. The Fund is operating as Segregated Portfolio Company and enables investors to allocate their savings to the most promising companies that will outperform the market in short-to-medium time horizon.
If you are looking for short-term investments for the period of up to 3 years, the Fund’s products suit you well. However, such type of investments considered as high-risk investments. The more risk you are ready to take, the higher potential return you may gain.
According to annual reports, top-performing product of the Fund has generated almost 317% total return since portfolio inception in February, 2019. Additionally, the fund charges no entry and annual fees, while ensuring high liquidity and anytime access to invested funds for just additional 2.99% early redemption fee in case investor needs to redeem the funds before the end of 24 months subscription agreement. If you are looking for long-term investments, it’s possible to extend subscription agreement to follow your long-term strategy and bring you to your financial goals in line with your risk profile and objectives.
With Einvestment, you can supercharge your portfolio and achieve broad diversification through international allocation to different regions, asset classes, sectors and currencies. The Fund enables investors to gain 100% offshore exposure and ensure tax-efficient asset allocation.
How to invest?
In order to subscribe to investment products of the Fund, you need to complete the following steps:
- Open an account and complete identity verification procedure. Paperless and fully-automated investor’s onboarding for ensuring hassle-free, simple and secure online investing experience.
- Set the amount of investment and adjust auto-reinvestment settings.
- Sign subscription agreement with electronic signature.
- Transfer the funds to wiring instructions displayed in your Investor’s Portal.
- Receive counter-signed copy of your subscription agreement upon arrival of funds.
- Track portfolio performance and receive monthly income distributions.
Performance of Tax-efficient investing
Please note that returns of mutual funds are linked to their performance instead of fixed interest rate, so your investment may lose it’s value. The value of holdings managed by the fund may fluctuate, so you need to accept taking the risks to feel comfortable with volatility. If the returns offered by low-risk investments don’t seem attractive, tax-efficient investing with top-performing mutual funds is a good choice, as you can select the products that fully match your goals.
Moreover, there are offshore ESG Funds for investors who want to invest in line with their values and put more emphasis to Environmental, Social and Governance factors when making decisions. Ethical investing is now becoming increasingly popular, as all investors feel responsible for the climate change, air and water pollution, and other ESG factors.
Portfolio managers at Einvestment follows sustainable investing trend and do not invest in toxic companies involved in air and water pollution, alcohol producing business, weapon manufacturing, forced or child labor, bribery and corruption. While following the trend, investing in green technologies is also generating high returns and has one of the most promising potential to growth as it’s global ideology to invest in a better world unites both investors and financial institutions in a global goal to save the nature, animals, society and governance.
In addition to tax benefits, tax-efficient investments generally deliver inflation-beating returns. The effect of rising inflation requires much more attention in the recent years because the fixed income investment products do not offer adequate returns that may beat the effect of inflation. If you are looking for long-term retirement investments, and you are already retired, the Fund offers reduced performance fee of just 15% from positive returns available exclusively for retirees.
Featured Tax-Efficient Investment Products
Extra High Yield Segregated Portfolio
Inception date: 13/02/2019 Total Return: ~317%
Portfolio Turnover Rate: 63% FULL INFORMATION
Income distributions: Monthly Investment minimum: 1,000 EUR
Learn more about the Fund and products – visit einvestment.com
2. Cryptocurrencies & Digital Assets
Investing in cryptocurrencies and digital assets involves the highest degree of risk. However, historical returns of this asset class is record-breaking. The returns seem unrealistic for traditional investors, and such growth is driven by rapid development of crypto market. Crypto investment funds are also becoming increasingly popular among both retail and institutional investors who are looking to invest with experienced wealth managers.
Please keep in mind that cryptocurrency market is highly volatile and your capital is at risk. If you feel that you have no sufficient experience, it’s better to talk to certified financial advisor or wealth manager to build the mix of income-producing assets for your portfolio and get the most from your savings while reducing the risks and growing your wealth securely.
Please contact your local tax advisor to identify and use the best strategy for tax-efficient investing in compliance with local tax regulations of your country.