An offshore investment fund is one which is based in an offshore jurisdiction, although the term is often used, perhaps incorrectly, to describe a fund which is based outside a particular high-tax country. An offshore investment fund cannot be marketed in some important high-tax countries unless its local supervisory and regulatory regime is recognized by those countries as being up to their standards. Broadly speaking, this means that if you see an offshore fund being marketed in a high-tax country, its investment behaviour is probably quite constrained, and this may limit its ability to achieve high returns for investors.