FPI stands for Foreign Portfolio Investments. It refers to investing in securities and other assets of a foreign country.
FPI involves purchasing stocks, bonds, mutual funds, or exchange-traded funds (ETFs) issued by entities in different countries.
Foreign Direct Investment (FDI) occurs when individuals, organizations, or governments from one country invest in businesses in another country.
FDI - An investment made by a foreign entity in a business enterprise
FPI - Investment in financial assets (e.g., stocks, bonds) of a foreign country.
FDI - Generally more stable due to more extended investment periods.
FPI - It can be more volatile and subject to quick changes in investor sentiment.
FDI - Investors have substantial control and can influence company decisions.
FPI - Investors have limited control and are considered passive investors.