Mutual funds are diverse stock holdings which are managed on behalf of the investors who buy into the fund. They allow investors to take advantage of a diversified portfolio without the need of investing a large sum of money.
Offshore mutual funds are collective investment schemes that pool resources from multiple investors and invest in assets across different countries.
These funds allow Kenyan investors to tap into global markets, providing exposure to international stocks, bonds, and other securities that may not be accessible locally.
By investing in offshore funds, investors diversify beyond Kenyan borders, which is essential for reducing risks associated with a single economy.
A diversified portfolio carries the advantage of offering protection against the rapid market losses of any particular stock. If stocks lose their value, the effect will be less if they belong to a portfolio that is spread across twenty stocks than if they belong to a portfolio that consists of a single stock.
Heres What you need to Know :
For Kenyan investors, offshore mutual funds open up opportunities in markets like the US, Europe, and Asia, which offer broader growth potential than local markets. These funds usually tend to be part of a broader wealth management strategy, and are often marketed by Kenyan banks and financial institutions, which provides access to these funds through global partnerships with international asset managers.
Mutual funds in general, are designed for longer-term holding rather than short-term trading. In fact, short-term trading by investors can hurt fund performance and limit the potential for great returns.
There are very many types of mutual funds, however, they can be categorized into 4 classes:
Equity Stock Funds.
