FDI vs FII. Know the key differencespptx

asadurrehman14 18 views 4 slides Jun 23, 2024
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About This Presentation

here is the link of video explanation of this presentation;

https://youtu.be/lJabt6fRcA8?si=i2vC3qDFGWVlfFS_

The ppt explains the core differences between FDI and FII with the help of easy examples.


Slide Content

Foreign Direct Investment - FDI Foreign Institutional Investment - FII VS ? ? ? ? ? ? ? ?

Foreign Direct Investment - FDI A car manufacturing company from Country A expands operations to Country B by building a factory, hiring local workers, and gaining full control over operations. The company is showing it’s physical presence in country B. A B FDI involves a long-term investment made by a company or individual from one country into a business or asset located in another country.

An investment firm from Country A seeks to invest in Country B's stock market by purchasing shares of listed companies, aiming for financial returns without establishing physical presence or control. Foreign Institutional Investment - FII A B FII refers to investments made by institutional investors, such as mutual funds, pension funds, or insurance companies, in the financial markets of a foreign country.

Foreign direct investment Foreign institutional investment Definition Duration Impact Nature Regulatory Body Direct investment in business or assets. Generally long-term. Can lead to job creation and tech advancement Stable and less liquid Investment in financial markets. Often short-term. Can lead to rapid market fluctuations More volatile and liquid Usually overseen by economic or trade ministries Typically managed by securities market regulators