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Belize Mutual Fund

Belize Mutual Funds are regulated by Mutual Funds Act (chapter 268) enacted in 1999.

Mutual fund is an open-end investment company combining and investing the money of a large group of peope in various securities, in order to achieve a specific objective in a certain period of time. Among benefits of Belize mutual funds there are portfolio diversification, the possibility of buying back shares at the current net asset value.

International financial services funds, if properly structured, differ from traditional mutual funds. There is lower level of regulation, making it easier to establish and administer the funds and reducing formation and operating costs. Also, greater flexibility of fund structure and the investment portfolio may be achieved when using mutual fund.

Due to its tax exempt status, Belize mutual fund is able to reinvest the amount of taxes on profits and gains. If not having this status in an offshore jurisdiction, this amount should be paid in high tax jurisdictions. To determine any potential tax liability, tax advice in the jurisdictions of the sponsormanager and each investor is needed.

Mutual funds have greater degree of liquidity than most types of investments. Usually investors may redeem their shares on any business day, at the current Net Asset Value that can differ from the original purchase price.

When establishing mutual fund in Belize tax haven, the following stages should be passed through: