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I too would urge caution. Extreme caution even. You should know exactly what's in the product you're buying and how much that product is costing you. Do you have any literature directly from the vendor that explains what this product is? It sounds suspect.

It's entirely possible that this is a completely legitimate product that, for example, owns stable dividend-paying utilities or something and uses written puts and/or calls (either a combination of naked puts, covered calls or short straddles) to generate ongoing income. Such a strategy could absolutely deliver 5-odd percent monthly returns in the right market and with ideal execution, but I would call it a very risky proposition.

I would suggest that actively-managed products and services tend to be very expensive as compared to something like index funds, and they overwhelmingly tend to underperform indices in the long term as well. The more exotic the product, the more costly it is and the worse it's apt to perform in my experience. Even if the short-term performance is good, in the long term you're often better off with simple, passive funds/products purchased in small amounts on a regular basis.

What you've been told about ongoing, regular contributions is spot on. This is called dollar cost averaging. In a choppy or declining market, it's likely to deliver the best average entry prices for assets.

What you've been told about the tax implications is suspect. You should consult with a tax expert or some legal representation. I know that in Canada, you are obligated to pay taxes for any offshore assets that generate income or returns for you. If you already pay foreign taxes on those, then by treaty those amounts will count towards your Canadian taxes and you will not be taxed twice. If you pay nothing to a foreign country, then you will pay Canadian taxes. You are also obligated to document in explicit detail what foreign assets you own if they cost in excess of a certain dollar amount. You can elect not to document any of these activities, but this does not make a tax-sheltered investment of them. It's simply breaking the law and exposure to legal ramifications.