Fpi means investing by investors in financial assets

such as stocks and bonds of entities located in

another country.
Investments typically involve transactions in
securities that are highly liquid
Equity investments where the owner holds less
than 10% of a company's shares are classified as
portfolio investment.
Portfolio investor is not involved in the
management of the company.
High rate of return and reduction of risk
FDI FPI
Involved in management
and ownership control
No active involvement in
management
Long-term approach Shorter investment
horizon
It is more difficult to sell
off or pull out.
It is easy to sell securities
and pull out
Undertaken by
Multinational
organisations
Comes from more diverse
sources
Having smaller in net
inflows
Having larger net inflows