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 of 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.