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Difference b/w FDI(foreign direct investment) and FII(foreign institutional investment)?


Difference b/w FDI(foreign direct investment) and FII(foreign institutional investment)?

FDI is an investment made in a corporate and not done thru a stock exchange by buying a lised stock, which is done by FIIs

FDI means an investment abroad, usually where the company being invested in is controlled by the foreign corporation.

eg: If Dow Jones Co invests in Times of India group, that is called FDI.

FII means an investor or investment fund that is from a country outside of the one in which it is currently investing. If an Amercian firm is buying Indian stocks, then it will regarded as FII.

FDI is done only to invest in the company and not with the intentions of becoming the shareholder.

whereas, FII are those who invest in the company by buying the shares of that company.

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