Difference Between FDI and FII

FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. ... While FIIs are short-term investments, the FDI's are long term investment. FII can enter the stock market easily and also withdraw from it easily.

Which is better FDI or FII?
What is the difference between FDI and FPI?
What is difference between FDI and ECB?
What is FDI FPI and FII?
What is FII example?
What is FDI and FII with example?
What are the 3 types of foreign direct investment?
Is FDI a part of GDP?
What are the benefits of FDI?
Who can take ECB?
Who can raise ECB?
Can ECB be availed in INR?

Which is better FDI or FII?

The money invested by FII is known as 'HOT Money' as the investors have the liberty to sell it and take it back. FDI is more preferred to the FII as they are considered to be the most beneficial kind of foreign investment for the whole economy. Foreign Direct Investment only targets a specific enterprise.

What is the difference between FDI and FPI?

FDI refers to the investment made by foreign investors to obtain a substantial interest in the enterprise located in a different country. FPI refers to investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange.

What is difference between FDI and ECB?

ECB means foreign funding which is not in the form of equity. When it is used in the form of equity capital, then it is called Foreign Direct Investment (FDI). ... The convertible instruments are covered under the FDI Policy. Any other direct capital is not allowed in ECB.

What is FDI FPI and FII?

Foreign Portfolio Investment (FPI) is similar to FDI in a way that this is also direct investment but investment in only financial assets such as stocks, bonds etc. of a company located in another country. ... Foreign Institutional Investor (FII) is an investor of group of investors who bring FPIs.

What is FII example?

A foreign institutional investor, or FII, is a hedge fund manager, pension fund manager, mutual fund, bank, insurance firm or representative agent of these entities who is registered to invest in a foreign country. ... This term is frequently used in reference to investing in emerging market economies.

What is FDI and FII with example?

What are the 3 types of foreign direct investment?

There are 3 types of FDI:

Horizontal FDI.
Vertical FDI.
Conglomerate FDI.

Is FDI a part of GDP?

GDP or Gross Domestic Product is a monetary measure of the market value of all final goods and services produced within a specified time period, which is often annually. ... FDI is included in the gross domestic when the money that is invested will be spent to create economic activity to form physical capital.

What are the benefits of FDI?

There are many ways in which FDI benefits the recipient nation:

Increased Employment and Economic Growth. ...
Human Resource Development. ...
3. Development of Backward Areas. ...
Provision of Finance & Technology. ...
Increase in Exports. ...
Exchange Rate Stability. ...
Stimulation of Economic Development. ...
Improved Capital Flow.

Who can take ECB?

(a) External Commercial Borrowings (ECB) refer to commercial loans [in the form of bank loans, buyers' credit, suppliers' credit, securitised instruments (e.g. floating rate notes and fixed rate bonds)] availed from non-resident lenders with minimum average maturity of 3 years.

Who can raise ECB?

Method of raising ECB: ECB can be accessed under two routes, viz. Automatic Route: For the automatic route, prospective borrowers need not to take RBI approval for raising ECB, in this the cases are examined by the Authorised Dealer Category-I (AD Category-I) banks.

Can ECB be availed in INR?

Yes, as long as the ECBs are in compliance with the ECB guidelines for the respective currencies as per RBI guidelines. The individual limit will include all ECBs raised, whether in foreign currency or INR.