ELI5: Explain Like I'm 5

Offshore investment

Hi there, little one! So, offshore investment is like when you have some extra money and you want to use it to make even more money. But instead of investing it in something close to home, like your mom and dad did when they bought your house, you send it to another country.

This other country might be a place where the laws are different and maybe the taxes aren't as high as where you live. That makes it easier for you to make more money from your investment. It's kind of like going to a different store to buy candy because it's cheaper there, but instead of buying a lollipop, you're putting your money into stocks or property.

It's important to know that investing is always a bit risky, like getting on a rollercoaster. Sometimes you might get a big reward, but other times you might lose some or all of your money. So if you're not careful, you could lose all your candy money forever.

But if you do it right, you could end up with much more candy than you started with. And that's why some grown-ups do offshore investing - to make more money and get more candy.