Certain offshore countries can be effectively used as an attractive low cost location for investment operations, or for the management of profits being deposited outside home countries. This type of offshore company permits the fund manager or investor to take advantage of those offshore locations that offer banking operations where the interest paid on funds deposited does not incur taxation, and where local tax-free bonds may also be available. Also, such investment management companies can trade their investments optimally without attracting capital gains taxes on investment trading profits.