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What is the difference between FDI and FII?
Portfolio investors: buy stocks or bonds in foreign country's and foreign direct investment: Investment that establishes a lasting interest in another country. SK(APEX) FII is investing into financial markets of India. Majorly secondary market. FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc. 1. FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. 2. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily. 3. Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 4. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 5. FDI flows into the primary market, the FII flows into secondary market. 6. FIIs are short-term investments, the FDI's are long term. FDI means foreign direct investment. FDI outflow means withdrawal of investments from a country is more than new investment, i.e.. more money is taken out than invested at a particular time. Portfolio investors: buy stocks or bonds in foreign country's and foreign investment: is an investment in an enterprise or buisness that operates outside the investors country.
What are the most important participants in the economy?
major players r the fdi's nd fii's nd bluechip cmpanies
Is there any difference between fdi and direct investment?
If the direct investment is foreign, then no, since FDI stands for 'foreign direct investment'.
What are the sources of foreign capital?
All About Foreign Capital - FDI/FIIIt's difficult for any developing nation to grow without foreign capital post globalization. Attracting foreign capital to one's country is one of the most important tasks of finance ministry and central banks. Foreign capital not only increases the growth rate of economy but also brings new ideas and technology which empowers the local industries. So, what are the sources of foreign capital and how are they classified? If there are different classifications, then which one is the most important with respect to growth perspective? What are the rules and regulations which govern the foreign capital and how will it affect common investors like us? Let's try to find answers to these crucial questions from India's perspective through this article.What is Foreign Capital and how is it classified?Any capital which is invested in India from foreign sources (Like Foreign Investors, Companies, NRI's, PIO's, etc) is considered as foreign capital.Classification of foreign capital:Classification of foreign capital is primarily based on the source of capital. Broadly, it's classified into four categories:1. Foreign Direct Investment (FDI)2. Foreign Institutional Investment (FII)3. Non Resident Indian i.e. NRI investment4. Person of Indian Origin i.e. PIO InvestmentCategory three and four are self explanatory, so we will focus on category one and two as a lot of confusion prevails in investors minds regarding FDI and FII.What are FDI and FII?Foreign Direct Investment (FDI):FDI stands for Foreign Direct Investment and it's a part of country's financial accounts. FDI basically comprises of investment by foreign individuals or entities into Indian companies. FDI's have ownership and controlling interest in the company and are treated as promoter group shareholders. A foreign company buying a majority stake in an Indian company is an example of foreign direct investment. FDI does not include foreign investment into the stock markets.Foreign Institutional Investment (FII):Foreign institutional Investment is the investment by foreign companies into Indian financial market. Its mandatory for FII's to register with the Securities and Exchange Board of India (SEBI) to participate in the financial market. Normally the FII's do not have ownership interest in Indian companies and their share holding can be compared to public share holding in a company. According to SEBI, foreign pension funds, mutual funds, charitable/endowment/university funds etc are treated as FII.To remove the ambiguity related to FDI and FII, Finance Minister Mr P Chidambaram has proposed that India will follow global practices to define foreign institutional investors (FIIs) and foreign direct investment (FDI) based on their share holdings in domestic firms. According to international practice, when an investor has a stake of 10% or less in a company, it is treated as FII and, when an investor has a stake of more than 10%, it is treated as FDI.Which is more reliable - FDI or FII?FDI is of long term in nature as the foreign investors have ownership interest. Exit route is relatively tough as FDI is a planned investment and most of the investment goes to physical assets. As a lot of future planning is involved, FDI is not speculative in nature. Compared to FDI, FII is short term in nature as most of the investment is done through secondary market. Entry and exit, both are relatively easy and hence the investments have speculative element in them.Using FDI/FII data as common investorsAs we can see that FDI is long term in nature and FII is short term in nature, investors and traders can map their style of investing with FDI and FII data. If you are a trader (short term time horizon) you should be more concerned about the FII data. Historically, it has been observed that stock index follows the FII cycle. When there is increase in FII flow stock market rises and when there is fall in FII activity stock market falls. Simply following the FII activity can be hugely beneficial for traders.If you follow long term investing style, you should be more concerned about FDI data. Track the sectors and companies which are attracting heavy FDI inflow. Tracking the government policies can provide a great insight into FDI inflow data. Planning your investment in accordance with the FDI data can create great fortune for you in long run.
How is relation between FDI and FII?
FII generally means portfolio investment by foreign institutions in a market which is not their home country. These institutions are generally Mutual Funds, Investment Companies, Pension Funds, Insurance House's is a short term benefit to the country and the rules and regulations to enter the Indian Market are not much, the fluctuations in the stock market is generally due to the FII Investments , cause the rules are eased the investor can leave the market at Any point of time. There investments are in the stock market whereas FDI is generally a long term commitment to a particular company in a sector in terms of equity investment by some foreign entity. Therefore we could see Lehman investing 15% in say Unitech, now that would be FDI. However if Lehman has bought shares of Unitech though secondary markets (stock trading market) it would have been an FII. FII funding is a paramount maker of stock markets and there selling or buying moves the stock in a day. FDI also have to follow a high rules and regulations to enter the market and the subs. given to such players are huge in term of taxes .FDI have long term commitment and hence we see flight of capital in terms of FII outflows but not generally in FDIs.The Economy high and low depends on the FDI's Investment where as the Stock mark fluctuations are generally because of FIIForeign direct investment (FDI) flows into the primary market whereas foreign institutional investment (FII) flows into the secondary market, that is, into the stock market.All other differences flow from this primary difference. FDI is perceived to be more beneficial because it increases production, brings in more and better products and services besides increasing the employment opportunities and revenue for the Government by way of taxes. FII, on the other hand, is perceived to be inferior to FDI because it only widens and deepens the stock exchanges and provides a better price discovery process for the scrips.Besides, FII is a fair-weather friend and can desert the nation which is what is happening in India right now, thereby puling down not only our share prices but also wrecking havoc with the Indian rupee because when FIIs sell in a big way and leave India they take back the dollars they had brought in.
What is the full form of FII?
The full form of FII is " Foreign institutional investors".
Who has free Wii fii?
mcdonalds. Its spelled Wi Fi not wii fii
What is New Economic Slavery?
Actually new economic slavery means - Under the Flag of Globalization, Liberalization and Privatization the world Imperialist Power like America is exploiting India like third world country merely by Capital Export as FII and FDI.
Does the nexus 7 have 3g?
nexus do come in 3 variants. i.e. 16gb with Wi-fii, 32gb with wi-fii & 32gb with 3g & wi-fii...
What is the full form of FII and DII?
FII is "Foreign Institutional Investments" & DII is "Domestic Institutional Investments"
Advantages and disadvantages of FDI?
FDI can be of benefit for strengthening ties between the countries involved. It can also be disadvantageous, as there may be political crisis in one of the countries, causing loss of business.
When was FDi magazine created?
FDi magazine was created in 2001.
