All about international growth funds

If you're looking to get the most from your cash by making it grow over the medium to long term, investing in international growth funds might be the option for you.

Growth funds invest mainly in the shares of companies around the globe that have significant profits or above-average revenue growth. As such, buying into one of these funds can mean good returns over the long term as long as these firms continue to grow.

However, their performance can be volatile in the short term. Lloyds TSB Offshore Fund Managers Limited offers a range of offshore growth funds that invest in companies around the world, as well as in international equities and UK bonds.

Growth funds: how do they work?

Offshore growth funds offer a potentially good way of investing your money while you live or work abroad. You can invest in growth funds based on firms in particular regions, such as Japan and the UK, or choose a product that concentrates on companies spread around the world.

Because they are focused on companies with an established reputation for good returns, premiums tend to be paid for shares in these firms. But fund managers are usually willing to pay this price because of the growth offered by such businesses.

However, this can mean that growth funds are more volatile than other types of investment vehicles, because a drop in a company's performance can lead to significant losses for investors. That is why growth funds are only suitable if you have a secured income and some spare money that you can afford to lose if the worst happens.

Otherwise, you should think things over carefully before deciding to invest in growth funds.

Growth funds from Lloyds TSB International

Lloyds TSB Offshore Fund Managers Limited offers a variety of growth funds for those looking into investing offshore. The Asian Pacific Fund offers the chance to invest in companies in Asia (excluding Japan) and Australia, while UK, European, Japanese and North American Funds concentrate on high-growth businesses in their respective regions.

You can also invest in the Capital Growth Fund for international equities and UK bonds, as well as the International Fund, which offers a worldwide vehicle for long-term capital growth. As with any investment fund, it's vital that you take the time to consider which product is best for your financial situation and needs.

It is worth bearing in mind that your capital is not guaranteed and that the value of shares in the fund can go down as well as up. The performance of your fund may be dependent on decisions made by the fund manager. Nevertheless, growth funds can offer advantages if you invest your money wisely and the investments selected by the investment manager continue to grow.

They can potentially provide a greater performance over a longer period of time compared with cash, bonds or property and you may get an annual income as long as the businesses your fund is invested in stay in profit.

These are some of the reasons why offshore growth funds remain popular among seasoned investors despite their volatile nature. If you think you might benefit from investing in Lloyds TSB Offshore Fund Managers Limited’s range of growth funds, just get in touch with them to see how they can help.

Even if growth funds aren't for you, they offer a variety of other investment vehicles that may be more suitable for your financial situation. To find out more, visit Lloyds TSB International.