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US Citizen wanted to invest in foreign mutual funds

Discussion in 'Business, Careers & Education' started by stevent, May 2, 2011.

  1. stevent

    stevent Well-Known Member

    Feb 16, 2010
    So I'm studying abroad in Spain and want to invest a good amount into a Swiss based mutual fund that has great returns (office in Spain as well).

    Does anyone know how this works in terms of my assets? Do I need an account in Spain or Switzerland? Or does something like HSBC Premier work? Investments would most likely be in Euros or CHF and I would need to convert dollars into this.

  2. Concordia

    Concordia Well-Known Member

    Oct 6, 2004
    Do check with your US accountant. In many cases, investing in foreign investment companies is illegal.

    Of course, they might tell you that they don't want your money if you're from the US. The potential scrutiny from the FBI might be more than they want to handle.
  3. jfclarky

    jfclarky Well-Known Member

    Oct 8, 2010
    New York, NY
    no offense but this sounds incredible dumb. You will lose on the exchange rate. With that said, why wouldn't you just invest in your usa account some adrs that are invested in the overseas mutual funds?

    The problem you will have will be two fold, taxes overseas (which will be written off in the us), taxes in the USA, trading short and long-term depending on turnover of the funds.

    why not pick 10-15 stocks that fit your investment profile, whether that is high risk, income generation, or growth.

    based on what i have read in your post you are going to invest a great amount into a single mutual fund. I not sure if you are aware of this but you shouldn't put all your eggs in one basket.

    I can only suggest that you invest in smallcap funds with some money in funds that have an exposure overseas. ING GRE is highly diversified, great dividend, low correlation to other funds.

    do some research my friend, you'll be pissing money away for no reason.

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