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Is fii and fpi same thing?

Updated: 9/18/2023
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11y ago

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No, they are not the same one.

FII- Foreign Institutional Investments

are the investments by foreign financial institutes like banks, insurance companies, pension funds, mutual funds etc. These are mostly in Govt. securities which are quite secure.

FPI- Foreign Portfolio Investment are by foreign investors in shares, bonds and equity mkt. FPI brings foreign exchange to the country but it has its own problems. It brings volatile money ie it can be taken up by any economic heat and whenever it is taken up it creates foreign exchange crunch to the country.

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