What is FII?
FII, or Foreign Institutional Investor, is an investor based outside the country in which they are investing. Foreign institutional investors usually invest large sums of money and can have a significant impact on the economy of the country they are investing in. They often invest in stocks, bonds, and other securities.
How does FII invest in India?
There are many ways for foreign investors to put their money into India. The easiest way is to buy shares in Indian companies that are listed on international stock exchanges. It gives the investor exposure to the Indian economy without having to go through the process of setting up a company in India.
Another way for foreign investors to get involved in India is to set up a joint venture with an Indian company. This can be a more hands-on way of doing business in India. It also allows foreign investors to tap into the local knowledge and expertise of their partner company. Finally, foreign investors can also directly set up a company in India. This option offers the most control over the business, but it comes with several regulatory hurdles that must be dealt with. Whichever way they choose to invest, foreign investors can be sure that there are plenty of opportunities available in India.
FII vs DII
Foreign Institutional Investor refers to organizations or individuals from outside the country investing in stocks, bonds, and other financial assets. On the other hand, DII stands for Domestic Institutional Investors which are mainly organizations within a country making investments in stocks, bonds, and other financial assets. These two types of institutional investors both have an important role to play in today's global economy as they help to diversify portfolios, increase liquidity and influence stock prices on exchanges.