Foreign Portfolio Investment
Foreign Portfolio Investment (FPI) refers to investments in stocks, bonds, ETFs, derivatives, and other financial instruments in a country different from the investor's home country. FPIs do not provide investors with ownership or control of the companies they invest in. Instead, they serve as a passive income vehicle, where the goal is typically to earn returns from the market's price movements or dividends. This differs from Foreign Direct Investment (FDI), where an investor acquires an ownership stake in a foreign company with the intention of gaining influence over business decisions and management.
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