Similar-sounding terms like foreign direct investment (FDI), foreign portfolio investment ( FPI ), and foreign institutional investor (FII) can be very confusing. To make it easy to understand and retain the information in the long run, we explain the Difference Between FDI, FPI , and FII with a well-structured Infographic. Foreign Portfolio Investment ( FPI ) involves foreign investors investing in a country's financial assets like stocks, bonds, and mutual funds to diversify their holdings. Foreign Portfolio Investment ( FPI ) plays a crucial role in the Indian financial markets by bringing in global capital, enhancing liquidity and boosting the country's economy. When investors from some other country buy securities or some other financial assets, this is referred to as a foreign portfolio investment ( FPI ). Stocks, bonds, mutual funds, exchange traded funds, American depositary receipts (ADRs), as well as global depositary receipts (GDRs) are a few examples of overseas portfolio investments. Following the presentation of the Union Budget for 2021-2022, it was reported that the Sensex showed an 11.36% increase due to Foreign Portfolio Investments in ...
