1) Legal entity 
An offshore fund is a collective investment scheme domiciled in an Offshore Financial Centre such as the British Virgin Islands, Guernsey Channel Islands, Luxembourg, or the Cayman Islands; it is typically sold exclusively to `foreign` investors (those not of the domestic fund sponsor`s country of origin). Thus, a common example could involve a......
A mutual fund whose headquarters is based outside the United States.
An investment scheme in which the fund is legally based outside the home country of the person investing in it. A fund might be established offshore for tax reasons or to avoid legal or regulatory restrictions.