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What's the difference between FDI (Foreign Direct Investment) & FII (Foreign Institutional Investors)??


What's the difference between FDI (Foreign Direct Investment) & FII (Foreign Institutional Investors)??

FII (Foreign Institutional Investors) - An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies.

FDI (Foreign Direct Investment)- An investment abroad, usually where the company being invested in is controlled by the foreign corporation. An example of FDI is an American company taking a majority stake in a company in China.

So while the dictionary gives almost the same meaning for both, I think the word "Institutional" refers to the organizations doing the investment vs single investor, while FDI can be done either by a single person or by organization.

Hope this helps.
Good luck.

There a letter D in the middle of one?

The spelling!

You need a 2 year LLM in taxation to understand that. Go hire a decent tax attorney.

FDI - Where a company sets up operations outside its home country.

An institutional investor is a large entity investor such as a bank, insurance fund, retirement fund, mutual fund, etc.

So i assume a foreign institutional investor would be as above but in another country.

One is an already established company making money and expanding/investing by entering into another country.

The other is an individual or large source of funds (such as a bank) investing in the company by lending money. Whether this is a foreign investor(investor in another country to the investment) or a foreign investment(investment in a different country to investor), i dont know..

FDI is when people invest in real assets in a country outside of there own
FII is when a large banks or institutaions invest there money outside of there own borders they are called ffi it could be fdi or portfolio investment

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