What are FDI (Foreign direct investment) and FII (Foreign institutional investors) and what is the difference in these?
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Answer Posted / Amit Kumar Singh
"FDI, or Foreign Direct Investment, refers to an investment made by a company from one country into business operations in another country. It gives the investor control over the foreign business and allows for long-term benefits such as market access, technology transfer, and increased productivity. FII, or Foreign Institutional Investors, on the other hand, are entities like mutual funds, pension funds, and insurance companies that invest in stocks, bonds, and other securities globally. They can buy and sell shares quickly but do not have control over the foreign business unlike FDI."
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