Belize has been extending an open invitation to investors to establish a mutual fund in the country.  Investors could participate in one of the three types of mutual funds, i.e. private, public and professional mutual funds.  The registration, administration and management of these funds are guided by the Mutual Fund Act which basically protects the interest of mutual fund investors.  The Mutual Fund Act actually defines “carrying on business from within Belize” to include business outside Belize.  Therefore, the law does not require a specific location for the administration and management of the mutual fund.  The manager of a mutual fund could in fact legally carry on the business anywhere else.

Below are the three types of mutual funds you can invest in in Belize:

1.  Private Fund.  This is the type of fund, with less than 50 investors, which is not allowed by law to offer its share to the public.

2.  Public Fund.  This type of fund is registered under the Belize Mutual Funds Act as a public fund, which offers its mutual fund shares to the general public.  From all the three types of funds, this fund requires a higher level of regulation.  This type of fund is required to be registered first before it could operate from or within the country.  Unlike other funds, the government requires this fund to issue audited complete and exact financial statements annually.

3.  Professional Fund.  The initial investment required for a professional mutual fund should not be less than US$100,000.  This type of fund is only offered to professional investors.   A professional investor is a person whose business is primarily involved in the acquisition and disposition of properties or a considerable part of the fund’s property; or he is a person who has declared a net worth or more than US$1 million.